Business
Shilling slides to sh4,200 levels on Wednesday
According to the Absa market report, money market liquidity conditions stayed tight as the effects of the recent Central Bank Rate increase continued to absorb shilling liquidity from the banking sector.
The imbalance between strong dollar demand and subdued supply continued to weigh on the shilling throughout the trading session.
By: Ali Twaha, Journalist @New Vision
KAMPALA - The Uganda shilling remained under pressure against the US dollar, depreciating to 4205/4215 from opening levels of 4180/4190 (buying and selling, respectively).
Traders attributed the local currency’s weakness mainly to persistent corporate demand for dollars from importers and energy sector players, set against limited hard currency inflows.
The imbalance between strong dollar demand and subdued supply continued to weigh on the shilling throughout the trading session.
The imbalance between strong dollar demand and subdued supply continued to weigh on the shilling throughout the trading session.
According to the Absa market report, money market liquidity conditions stayed tight as the effects of the recent Central Bank Rate increase continued to absorb shilling liquidity from the banking sector.
In the debt market, yields at Wednesday’s treasury bill auction rose across all tenors. A total of sh372.55b in face value was accepted against an offered amount of sh350b.
The 91-day, 182-day and 364-day maturities increased by 155bps, 265bps and 300bps to clear at money market yields of 11.249%, 13.400% and 14.499%, respectively.
In the debt market, yields at Wednesday’s treasury bill auction rose across all tenors. A total of sh372.55b in face value was accepted against an offered amount of sh350b.
The 91-day, 182-day and 364-day maturities increased by 155bps, 265bps and 300bps to clear at money market yields of 11.249%, 13.400% and 14.499%, respectively.