Business
Shilling opens week slightly firmer against dollar
“Nonetheless, the shilling remains susceptible to depreciation pressures stemming from offshore investor demand and ongoing uncertainties related to the Middle East conflict,” Richard Nsubuga, a market analyst and trader, says.
Shilling opens week slightly firmer against dollar
By: Ali Twaha, Journalist @New Vision
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The Uganda shilling opened the week trading firmer, closing the day’s trading at 3925 / 3935 versus the day’s opening of 3930 / 3940.
Traders say the local unit is being supported by subdued demand for hard currency amidst pockets of inflows from commodity exporters and charities.
“Nonetheless, the shilling remains susceptible to depreciation pressures stemming from offshore investor demand and ongoing uncertainties related to the Middle East conflict,” Richard Nsubuga, a market analyst and trader, says.
Money markets were liquid, according to Absa, with overnight funding rates averaging 9.42%. Activity in the secondary market was relatively subdued, although pricing retained a firmer bias, with offers generally improving as most market participants chose to remain on the sidelines.
The Bank of Uganda will conduct a treasury bond auction on September 23, where a new 15-year bond will be issued together with the reopening of the benchmark 2-year, 5-year, and 25-year maturities.
Money markets were liquid, according to Absa, with overnight funding rates averaging 9.42%. Activity in the secondary market was relatively subdued, although pricing retained a firmer bias, with offers generally improving as most market participants chose to remain on the sidelines.
The Bank of Uganda will conduct a treasury bond auction on September 23, where a new 15-year bond will be issued together with the reopening of the benchmark 2-year, 5-year, and 25-year maturities.