Shilling steadies Monday ahead of treasury bills auction

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The Uganda shilling edged higher at the start of the week, closing Monday’s session at 3553/3563 against the dollar, a touch stronger than its opening of 3555/3565.

The local currency traded within a narrow band, supported by dollar inflows from commodity exporters, while demand from importers and other sectors remained muted.

Traders expect the shilling to remain steady in the coming days, holding within the 3525 to 3585 range that has marked recent sessions.

Money markets were awash with liquidity according to Absa report, with overnight lending between banks averaging 9.98% and one-week funds at 10.40%. The Bank of Uganda has lined up a treasury bills auction on August 27, offering securities worth sh355b.

The central bank is also set to manage a busy schedule of maturities later in the week. About sh771.2b in repo agreements and sh444b in treasury bills will fall due on Thursday, volumes that could shape liquidity conditions in the days ahead.