Business
Shilling strengthens on commodity inflows, remittances
Traders said the improved supply of hard currency helped ease demand pressures that have weighed on the unit in recent sessions, allowing the shilling to post gains through the day.
The resultant increase in shilling liquidity helped ease pressures, with funding rates averaging 12.27%.
By: Ali Twaha, Journalist @New Vision
KAMPALA - The Uganda shilling strengthened against the dollar in Tuesday’s trading session, supported by inflows from the commodities sector, month-end remittances and Not-for-Profit organisations that kept the market well supplied with dollars.
As a result, the local currency appreciated to close firm at 4230/4240 from opening levels of 4265/4275.
Traders said the improved supply of hard currency helped ease demand pressures that have weighed on the unit in recent sessions, allowing the shilling to post gains through the day.
In the money markets, liquidity conditions improved following government disbursements of about sh400b at the end of last week, according to Absa.
The resultant increase in shilling liquidity helped ease pressures, with funding rates averaging 12.27%.
In the money markets, liquidity conditions improved following government disbursements of about sh400b at the end of last week, according to Absa.
The resultant increase in shilling liquidity helped ease pressures, with funding rates averaging 12.27%.