Business
Shilling stable as central bank absorbs more cash
Traders said thin hard currency supply kept the local unit under slight pressure, resulting in a modest depreciation over the session. The USD/UGX pair closed at 4095/4105, compared to yesterday's close of 4080/4090.
Shilling stable as central bank absorbs more cash
By: Ali Twaha, Journalist @New Vision
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The Uganda shilling traded relatively flat against the dollar on Wednesday, with local interbank and offshore dollar demand outpacing the limited inflows available in the market.
Traders said thin hard currency supply kept the local unit under slight pressure, resulting in a modest depreciation over the session. The USD/UGX pair closed at 4095/4105, compared to yesterday's close of 4080/4090.
Micheal Atingi-Ego, the governor at Bank of Uganda, said the regulator will continue absorbing excess liquidity from the system to ease inflation expectations and pressure on the currency.
He said the temporary tightening is meant to secure medium-term macroeconomic stability, which is the bedrock of the ten-fold growth strategy.
Money market liquidity remained constrained during the session, according to Absa, keeping funding rates elevated at an average of 13.50%.
He said the temporary tightening is meant to secure medium-term macroeconomic stability, which is the bedrock of the ten-fold growth strategy.
Money market liquidity remained constrained during the session, according to Absa, keeping funding rates elevated at an average of 13.50%.