African foreign exchange markets face diverging pressures as July closes in 2026. Zambia and Ghana anticipate currency depreciation amid political caution and corporate dollar demand, while Uganda’s shilling firms on month-end commodity inflows, Kenyan and Nigerian currencies stabilize, and international lenders weigh upcoming support disbursements.
Foreign exchange markets across the African continent are experiencing starkly mixed trajectories at the close of July 2026.
Zambian Kwacha and Ghanaian Cedi Face Corporate Demand Pressures
Zambia’s kwacha is sliding as hard currency demand builds and market participants exercise caution ahead of the country’s upcoming presidential and parliamentary elections scheduled for August 13. Commercial banks quoted the currency of Africa’s second-largest copper producer at 18.95 per dollar, weakening from 18.54 the prior week.
Ghana’s cedi is similarly positioned to edge lower against the greenback due to persistent corporate dollar demand originating from the energy and commerce sectors. LSEG data placed the cedi at 11.66 to the dollar on Thursday, compared with 11.60 a week earlier.
Traders noted that foreign exchange demand remains firm, propelled by the energy and commerce sectors alongside corporate requirements linked to dividend repatriation. Simultaneously, central bank foreign exchange supply moderated through July compared with June levels. Unmet dollar demand from central bank auctions could compound downward pressure on the cedi in upcoming sessions. However, traders expect the disbursement of the final $371 million under the $3 billion Extended Credit Facility program from the International Monetary Fund to provide near-term support for the cedi.
Ugandan Shilling Firms on Month-End Inflows as Kenyan Shilling Holds Stable
In contrast to the downward momentum in West and Southern Africa, Uganda’s shilling is expected to strengthen, aided by month-end dollar inflows from commodity exporters and charities. Commercial banks quoted the shilling at 3,745 to 3,755 per dollar, tightening from the previous week’s close of 3,755 to 3,765.
Meanwhile, the Kenyan shilling is projected to remain broadly stable following minor losses earlier in the period, underpinned by month-end diaspora inflows. Commercial banks exchanged the Kenyan currency at 129.15 to 129.30 per dollar, recovering from last week’s close of 129.40 to 129.60 after correcting from late-week weakness.
Nigerian Naira Range-Bound Amid Central Bank Support
Nigeria’s naira is trading within a range, sustained by central bank dollar sales after easing earlier in the week. The official market quoted the naira at 1,373 per dollar on Thursday, shifting slightly from the previous week’s rate of 1,369 naira, while street trading saw the currency change hands at 1,405 to the dollar.
Traders added that any depreciation triggers pushing past 1,390 would likely prompt increased central bank market participation to bolster local liquidity.