Business
Shillings picks more gains in Wednesday's session
Traders said the local currency also benefited from month-end foreign exchange inflows, particularly from remittances and non-governmental organisations (NGOs).
Shillings picks more gains in Wednesday's session
By: Ali Twaha, Journalist @New Vision
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The Uganda shilling strengthened against the dollar during Wednesday's trading session, supported by subdued corporate dollar demand.
Traders said the local currency also benefited from month-end foreign exchange inflows, particularly from remittances and non-governmental organisations (NGOs).
As a result, the shilling appreciated from opening levels of 3755 / 3765 to close at 3730 / 3740.
As a result, the shilling appreciated from opening levels of 3755 / 3765 to close at 3730 / 3740.
According to Absa data, liquidity conditions in the money market remained ample, with overnight and one-week lending rates averaging 9.50% and 9.70%, respectively. Despite the improved liquidity, the Central Bank remained on the sidelines, refraining from any liquidity management operations.
In the debt market, yields from Wednesday’s Treasury bond auction declined across the curve, with the 2028s, 2032s, 2039s and 2050s bonds clearing at 12.50%, 14.25%,15.65% and 16.00%, respectively, representing reductions of 30bps, 45bps, 10bps and 29bps respectively from the previous auction.
The Government offered a total of sh1.4 trillion and accepted sh1.36 trillion in face value, translating into sh1.45 trillion in cash proceeds.
In the debt market, yields from Wednesday’s Treasury bond auction declined across the curve, with the 2028s, 2032s, 2039s and 2050s bonds clearing at 12.50%, 14.25%,15.65% and 16.00%, respectively, representing reductions of 30bps, 45bps, 10bps and 29bps respectively from the previous auction.
The Government offered a total of sh1.4 trillion and accepted sh1.36 trillion in face value, translating into sh1.45 trillion in cash proceeds.