Commodity exports support Uganda Shilling stability

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The Ugandan shilling traded in a narrow range on Tuesday, opening and closing at the 3580/3590 levels on the back of balanced dollar demand and supply trading activity.

Traders said commodity exports have continued to support the local unit amidst marginal dollar demand from the energy and manufacturing sectors. The shilling is still anticipated to trade within the 3580-3630 range in the near term.

Money markets were liquid during the day, according to Absa data, with overnight and one-week trades averaging at 9.30% and 10.13%, respectively. The secondary securities activity was muted, with no strong conviction seen on either side of the market.

The Bank of Uganda will conduct a treasury bill auction tomorrow (July 16) worth sh355b