E AST African currencies held firmly against the US dollars in last month and they are expected to remain strong this month due to dollar inflow from cash crop exports.
The currencies of five member states, Tanzania, Kenya, Uganda, Rwanda and Burundi, showed minute fluctuation in either sides raging between -2 and 11 units. Uganda currency firm The best currency was Uganda’s shilling that appreciated by 11/- to 3,605/- up from 3,616/- at August 1st.
The shilling held its position firmly yesterday since it was underpinned by low dollar demand from commercial banks and importers in the manufacturing and telecommunications sectors. The second best was Kenyan that gained by 1/- yesterday to 103/- from 104/- the first day of last month.
Tanzania shilling loses On other hand the Tanzania shilling, in a month under review, depreciated more compared to its peer units. The shilling opened last month at 2,242/- a greenback but slipped to 2,246/- yesterday to start a month in slightly bad foot.
“The impact for the fluctuation of two or five shillings is insignificant, but is something,” Leonard Joseph, an economist said. Kenya shilling upbeat Kenyan shilling yesterday opened the trading floor at a stable note and traders said it may start to strengthen.
However, the shilling of the biggest economy in the bloc—depreciated last Friday after the Supreme Court nullified August 8th presidential election—on month basis marginally gained by 1/- to 103/- from 104/- of August first.
The shilling and alongside Kenyan shares and dollar bonds had plunged on Friday after the court backed a petition brought by opposition leader Raila Odinga and declared President Uhuru Kenyatta’s election victory invalid.
But traders said the shilling could start to regain ground as investors gradually come to terms with the ruling but things must remain constant. Rwandese franc fluctuate within range Rwandan francs dipped by 2 units to open the month yesterday at 842 franc from 840 franc.
The currency expected to hold its ground for the rest on the year due since importers pressure to buy stocks in preparation for Christmas ends in third quarter. Burundian franc down Burundi’s franc lost 8 units in the last one month to start this month at 1,758 franc compared to 1,750 franc exchange level of first day of last month.