Business
Shilling up ahead of debt auction resultsPublish Date: Mar 26, 2014
Shilling up ahead of debt auction results
  • mail
  • img
newvision

THE Ugandan shilling gained slightly on Wednesday on anticipation that a local debt auction would draw money from abroad, and it was expected to strengthen further as exporters and charities converted funds towards the end of the month.

At 0847 GMT, commercial banks quoted the currency of east Africa's third-largest economy at 2,558/2,568, marginally stronger than Tuesday's close of 2,560/2,570.

"The shilling has climbed slightly up because we anticipate some appetite from offshore investors for the bonds being auctioned today," said Manohar Miryala, the head of treasury at Crane Bank.

Bank of Uganda was expected to release later on Wednesday the results of a Treasury bond auction of two- and five-year notes worth 180 billion shillings ($70.23 million).

"We'll probably be seeing an improvement in inflows from exporters of agricultural commodities like coffee in the last days of the month," Miryala added.

Uganda is Africa's largest coffee exporter, and earnings from the beans are a key support for the shilling currency.

A trader at a leading commercial bank said the usual end-month inflows from non-governmental organisations (NGOs) "will probably buoy the shilling further". 

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
West Nile grid extension on schedule
THE West Nile power grid extension from Nyagak Hydro plant to the rest of the districts is moving steadily with over 46% of the work on the sh44 billion project...
Gov’t allocates sh10b for tarmacking roads
GOVERNMENT has earmarked sh10b for the tarmacking of roads intended to enhance commerce, reduce dust and facilitate mobility in 26 town councils...
Local govt asked to participate in alternative energy planning
Ministry of energy officials and experts from GIZ have urged local government leaders to participate in developing affordable and efficient sources of energy at district level to light up districts instead of the long waiting for the central government to do for them what they can do themselves....
Central Bank begins financial literacy campaign in schools
Bank of Uganda has started a campaign to boost people’s understanding of economic issues affecting them so that they can identify opportunities to exploit....
Shipping firm chief accountant charged in MTN $3.8m fraud
The chief finance officer of Three Ways Shipping Company has been charged with embezzling $3.8m (about sh10b), belonging to telecom company MTN....
Kabila fires CEO of state miner Gecamines for "gross negligence"
Democratic Republic of Congo's President Joseph Kabila has fired the chief executive of the country's state mining company Gecamines for "gross negligence", according to a presidential decree read out on the state television channel....
Should private schools and institutions be given tax exemption?
Yes
No
Can't Say
follow us
subscribe to our news letter