Business
Shilling weakens on dividend flows
Publish Date: Mar 24, 2014
Shilling weakens on dividend flows
  • mail
  • img
newvision

THE Ugandan shilling weakened on Monday as foreign-owned commercial banks stocked up greenbacks in preparation to make dividend payments abroad, but a scheduled Treasury auction this week was seen limiting the local currency's losses.

At 1127 GMT commercial banks quoted the currency of east Africa's third-largest economy at 2,570/2,580, weaker than Friday's close of 2,555/2,565.

"We've had a lot of (dollar) appetite from banks which I think is being driven by preparations for dividend payments," said Ali Abbas, trader at Crane Bank.

Money market analysts say the local currency's medium-term outlook is weak, undermined by concerns over the potential economic impact of aid cuts by western donors.

A total of about $120 million in grants and loans has been withheld or cut by western donors protesting Uganda's enactment of a harsh new anti-gay law.

Aid is an important source of foreign exchange inflows for Uganda which has a weak export base.

"The shilling could... get some respite this week if offshore participation in this week's treasury bonds auction is big," said a market note from KCB Uganda.

Bank of Uganda is due to sell a total of 180 billion shillings ($70 million) worth of new two and re-opened five-year Treasury bonds.

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 digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Professional bodies urged to attend infrastructure summit
DURING a recent meeting with several representatives of professional bodies at the ministry, Okello said the in-put of professional bodies was needed...
PPDA to launch Gulu office
THE Public Procurement & Disposal of Public Assets Authority (PPDA) will officially launch its northern Uganda regional office in Gulu on Friday...
Govt explains low funding to agriculture sector
The Government has explained the low funding to the agriculture sector saying infrastructure development, energy and education are the priorities now....
New interest in Uganda’s oil and gas investments
A Hong Kong-based firm seeks new markets in Uganda in areas where dev''t exists from oil and gas to minerals and consumer goods....
African air travel primed for take-off
Africa has long been the El Dorado just over the horizon for airlines, but sustained economic growth and the emergence of a middle class on the continent may finally clear the obstacles from the runway....
Kavera operation stirs Kikuubo
Gunshots and tear gas sent traders in Kikuubo scampering for cover as the Police and NEMA officials confiscated polythene bags at TESCO building...
Should medical students be subjected to pre-admission exams?
Yes
No
Can't Say
follow us
subscribe to our news letter