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
Scientists told to research on local construction materials
The Research Industrial Institute should come up with new technologies of local materials in the construction industry in the country to reduce reliance on imported ones....
PM Rugunda launches USE automated system
The Uganda Securities Exchange (USE) is now officially trading using an internet-enabled automated trading system....
World markets plunge on fears of weaker global growth
World stock markets plunged further on Tuesday as more gloomy evidence emerged of China''s economic slowdown, triggering heavy sell-offs from Hong Kong to New York and raising fears of weakening global growth....
Consider solar more as alternative power source- Eskom boss
The new head of power generating firm, Eskom has advised Uganda to explore its solar potential seriously as an alternative to the hydropower to increase electricity reach....
Top Ugandan executives to woo investors at UNAA meet in Louisiana
Top executives of major government agencies are heading to the 27th Annual Uganda North American Association (UNAA) Convention in New Orleans, Louisiana to address the Ugandan Diaspora community....
NARO launches modern agricultural practices campaign in schools
The National Agricultural Research Organisation (NARO) has launched its campaigns for sustainable modern agricultural practices in rural schools to ensure quick dissemination of the new farming technologies already invented, for increased quality and quantity of farm produce, job creation, food sec...
Are poor parliamentary debates a result of removal of school debates?
Yes
No
Can't Say
follow us
subscribe to our news letter