Shilling steady, seen stronger on dollar inflows
Publish Date: Feb 19, 2014
Shilling steady, seen stronger on dollar inflows
  • mail
  • img

KAMPALA - The Ugandan shilling was steady on Wednesday and was expected to appreciate in the days ahead as the central bank mopped up liquidity and dollars flowed in from offshore investors buying debt.

Commercial banks quoted the currency of east Africa's third-largest economy at 2,453/2,458, little changed from 2,452/2,457.

"The repo that the central bank did today coupled with suppressed demand for dollars will give the shilling a bullish tone going forward," said David Bagambe, a trader at Diamond Trust Bank. "However, the shilling will also derive a bit of energy from inflows from foreign investors who are targeting Ugandan debt."

Bank of Uganda, the country's central bank, issued a seven- day repo that was taken at 11.5 percent. It did not disclose how much it sucked out of the market.

The bank also sold Treasury bills worth 165 billion shillings ($67.26 million). The yield on the benchmark 91-day paper rose to 9.557 percent from 9.266 percent at the last sale.

The shilling has kept its footing against the greenback this year, underpinned by sluggish importer appetite for hard currency, the liquidity mop-ups by the central bank and inflows from offshore investors.

Faisal Bukenya, the head of market making at Barclays Bank, said the shilling was likely to find resistance at 2,450 and support at 2.470 in coming days.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact

  • mail
  • img
blog comments powered by Disqus
Also In This Section
LG president jets in from South Korea
The president and CEO of the LG Mobile Communication Company Juno Cho has jetted into Uganda for the first time to assess how the business is doing....
Government has embarked on the process of licensing warehouses across the country to improve quality of grains especially maize in Uganda....
Gov’t told review social protection policy
GOVERNMENT has been asked to review the Social Protection Policy to include vulnerable groups like the youth in agriculture production who lack financial support...
Second annual Social Media summit set for December
All is set for the annual Social Media Summit to be held next month on 3rd December, under the theme ‘Social Means Business’. The summit aims to identify, share, train and advance the use of social media in corporate, businesses, public and non-profit sectors....
Grain millers protest high electricity tariffs
GRAIN processors are demanding for a meeting with President Yoweri Museveni to help them secure their own tariff from the Electricity Regulatory Authority and UMEME...
Dollar holds euro gains but dips against emerging units
The dollar held its gains against the euro Tuesday as markets bet on a Federal Reserve rate hike next month, while emerging market currencies got a lift from optimism over the world's top economy....
Is Uganda ready for the pope's visit?
Can't Say
follow us
subscribe to our news letter