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UPDATE 1-AFRICA-FX-Kenyan, Ugandan shillings to firm, Zambia's kwacha to weaken

 (Adds Nigerian naira)
    NAIROBI, July 12 (Reuters) - The Kenyan and Ugandan
shillings are expected to strengthen against the dollar in the
next week to Thursday, while Zambia's kwacha is forecast to
weaken, traders said.
    The Kenyan shilling        is expected to gain ground,
supported by dollar inflows from remittances and investors
seeking to buy government bonds, traders said. 
    Commercial banks quoted the shilling at 100.70/90 per dollar
compared with 100.65/85 at last Thursday's close. 
    "We've seen inflows from investors interested in government
paper," said a trader from a commercial bank.
    The Ugandan shilling        is seen trading with a firming
tone in the coming days, helped by inflows of hard currency from
non-governmental organisations and a liquidity squeeze in the
interbank market. 
    Commercial banks quoted the shilling at 3,750/3,760,
stronger than last Thursday's close of 3,830/3,840. 
    "They (inflows) are coming in at a time when demand has
dimmed, that will keep the shilling's momentum on the stronger
side," Faisal Bukenya, head of treasury at Exim Bank Uganda,
    Nigeria's naira          is expected to be stable next week
driven by exporters selling dollars on the interbank currency
market, traders said
    The naira has been trading between 362 and 363 per dollar
for a while as customers shy away from trading the currency
weaker. Traders say dollar liquidity improved this week with
lenders selling export proceeds to customers. 
    On the official interbank market the naira is quoted at
around 305.

    Ghana's cedi        could continue its slow recovery next
week mainly on increased central bank dollar sales, after it
touched new lows last week.
    The local currency, which had been under pressure since May,
recovered marginally on Wednesday as weeks of increased central
bank support began to kick in. It was trading at 4.77 to the
dollar by mid-morning on Thursday compared with 4.79 a week ago.
    "The cedi is expected to extend its recovery as the central
bank's presence on the market holds back speculative long
positions," said Accra-based currency analyst Joseph Biggles
    The kwacha        is expected to lose ground in the coming
week as dollar supply dries up after the end of tax payments,
which had boosted the local currency.
    Commercial banks quoted the currency of Africa's
second-largest copper producer at 9.8900 per dollar, down from a
close of 9.7900 a week ago.
    "The dollar supply that came in droves and propped up the
market has started to die down," the Zambian branch of South
Africa's First National Bank (FNB) said in a note to clients.   

 (Reporting by John Ndiso, Elias Biryabarema, Chris Mfula,
Chijioke Ohuocha and Kwasi Kpodo; Compiled by George Obulutsa;
editing by John Stonestreet and David Stamp)