Nigeria’s naira and Zambia’s kwacha may strengthen further in the near term as improving macroeconomic conditions, policy reforms, and supportive commodity trends boost investor confidence across key African foreign exchange markets.
Analysts note that Nigeria’s ongoing monetary tightening, foreign exchange reforms, and improving dollar liquidity have helped stabilise the naira after a prolonged period of volatility. Renewed foreign portfolio inflows and stronger oil revenue expectations are also contributing to a more supportive outlook for the currency.
In Zambia, the kwacha is benefiting from firmer copper prices and progress on economic reforms following debt restructuring efforts. Improved fiscal discipline and stabilising external balances are strengthening market sentiment, giving the currency room for further appreciation if global conditions remain favourable.
However, analysts caution that both currencies remain sensitive to global financial conditions, commodity price fluctuations, and domestic policy execution. Any slowdown in reform momentum or shifts in investor risk appetite could limit gains despite the current positive outlook.
Overall, while near term prospects for both the naira and the kwacha appear constructive, sustained stability will depend on continued macroeconomic reforms, resilient export earnings, and effective management of inflationary pressures.
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