Business
Shilling strengthens as banks cut dollar positions
Publish Date: Apr 11, 2014
Shilling strengthens as banks cut dollar positions
  • mail
  • img
newvision

KAMPALA - The Ugandan shilling firmed on Thursday, boosted by banks cutting their dollar positions in the interbank market as demand from importers declined.

At 0741 GMT, commercial banks quoted the currency of Africa's largest coffee exporter at 2,520/2,530, stronger than Wednesday's close of 2,528/2,530.

"Demand from importers is largely absent, which is forcing most banks to cut back on their dollar positions," said Faisal Bukenya, head of market making at Barclays Bank. "I am expecting it (the shilling) to keep an appreciation bias going forward, because I don't anticipate a rebound in corporate demand soon."

The local currency is largely stable in the year to date, underpinned by soft greenback appetite, liquidity mop-ups by the central bank and hard-currency inflows from offshore investors buying into Ugandan debt.

Ahmed Kalule, a trader at Bank of Africa, said the shilling was likely to trade in the 2,510-2,540 range in coming days, supported by inflows from commodity exporters meeting with weak demand.

Reuters

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
Rwanda Air to launch flights to Abidjan, Lusaka
Regional airline RwandAir will soon launch flights to three more destinations in the next five months which include the Ivory Coast capital Abidjan and Zambian capital Lusaka....
Peter Ssematimba reinstated in the disputed Muyenga Club management
THE Supreme Court has confirmed a ruling in which the Court of Appeal upheld the High Court ruling, restoring Super FM Radio proprietor and managing director, Peter Ssematimba into the Muyenga Club....
Museveni to engage Kenyatta over continued blockage of Ugandan exports
President Yoweri Museveni has promised to engage Kenyan president, Uhuru Kenyatta, over continued blockage of Ugandan exports, an action that contravenes the East African Community (EAC) treaty....
Women conference to address business networking challenges
The conference, which opens on Thursday, will focus on devising means of confronting key challenges that hinder women from fully exploiting their potential....
Apple market value hits $700 bn
A rise in Apple shares Tuesday pushed the market value of the trend-setting US tech icon above $700 billion, becoming the first company to hit that milestone....
82 Ugandan companies enter EAC market
Eighty-two new small to medium Ugandan companies have managed to break into the East African market since 2009, according to the Uganda Exports Promotions Board (UEPB)....
Should Govt lease parts of Lake Victoria to private developers?
Its Ok
No Way
Not Sure
follow us
subscribe to our news letter