Business
Shilling faces slight pressure in Monday’s session
Traders said the depreciation was mainly attributed to strong interbank demand for dollars against a backdrop of limited foreign currency inflows.
Shilling faces slight pressure in Monday’s session
By: Ali Twaha, Journalist @New Vision
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The Uganda shilling depreciated against the dollar during Monday’s session, weakening from opening levels of 4085/4095 to 4100/4110 by end of day.
Traders said the depreciation was mainly attributed to strong interbank demand for dollars against a backdrop of limited foreign currency inflows. The imbalance between demand and available dollar supply kept pressure firmly on the local currency throughout trading.
In the money markets, liquidity in the banking sector remained tight, according to Absa, with reduced shilling liquidity pushing funding costs slightly higher. Absa said overnight and short-term interest rates averaged between 12.75% - 13.00% over the course of the session.
In the money markets, liquidity in the banking sector remained tight, according to Absa, with reduced shilling liquidity pushing funding costs slightly higher. Absa said overnight and short-term interest rates averaged between 12.75% - 13.00% over the course of the session.