Uganda shilling extends gains in Monday’s session

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The Uganda shilling extended its gains against the dollar to close Monday’s session at 3470/3480 from an opening of 3510/3520. 

Traders said the local unit benefited from sustained dollar-selling interest by offshore players who remained active during the two‑day general elections holiday, allowing the shilling’s spot market to gain an additional 40 shillings ahead of today’s trading.

“Improved dollar inflows from commodity exports and subdued corporate demand across sectors also supported the shilling, briefly strengthening it to the 3450/3460 levels,” Rahmah Masagazi, a market analyst, said.

“That dip attracted opportunistic buyers, though sentiment still favours further gains, with the currency expected to trade within a revised near‑term range of 3425–3550.”

Liquidity in the money markets remained tight, according to Absa, with overnight and one‑week interbank rates averaging 9.93% and 10.72%, respectively. The Bank of Uganda has scheduled a treasury bond auction, offering sh990b across the 2‑year, 5‑year, and 15‑year tenors.