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
MPs demand accountability for sh5b for curbing banana wilt
MEMBERS of Parliament have demanded accountability from the Minister of Agriculture regarding sh5b allocated for fighting banana bacterial wilt in the country....
Museveni in China for Asian economic forum
President Yoweri Museveni is in the Chinese City Island of Hainan in Sanya for the BOAO Forum for the Asia Annual Conference....
Airlines scramble for new cockpit rules after crash
Airlines and policy makers rushed to mandate two crew members be in the cockpit at all times following revelations that from the doomed Germanwings flight....
Uganda robbed of sh1.5 trillion annually
UGANDA loses an average of $509m (about sh1.5 trillion) annually due to Illicit Financial Flows (IFFs). The figure is 10% of the current national budget...
KCCA wants sh7b for Usafi market
A Sh7b supplementary approval request by Kampala Capital City Authority (KCCA) for the purchase of Usafi market in Kampala has raised eyebrows among members of the parliamentary budget committee....
Workers MP demands workers representation on district councils
A proposal to have workers represented on district councils has been mooted by Workers’ representative in Parliament, Arinaitwe Rwakajara in a bid to ensure that their rights are protected and to curb exploitation....
Will the ban of food vendors help eliminate typhoid?
Yes
No
Can't Say
follow us
subscribe to our news letter