Business
Uganda shilling extends losses to sh4,000 per dollar
Traders said the depreciation was largely driven by strong and persistent dollar demand from corporate players, compounded by offshore investors unwinding portions of their local bond holdings, which added further pressure on the local currency.
Uganda shilling extends losses to sh4,000 per dollar
By: Ali Twaha, Journalist @New Vision
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The Uganda shilling extended its losses against the dollar in Monday’s session, weakening from opening levels of 3,985/3,995 to an all-time low of 4,030/4,040.
Traders said the depreciation was largely driven by strong and persistent dollar demand from corporate players, compounded by offshore investors unwinding portions of their local bond holdings, which added further pressure on the local currency.
In the money markets, liquidity conditions improved modestly according to the Absa markets report, following month-end and quarter-end government releases that provided some relief from the tight liquidity conditions.
The Central Bank remained on the sidelines and refrained from conducting any open market operations, allowing the improved liquidity conditions to prevail.
Bank of Uganda will conduct a treasury bond auction on October 7, where the benchmark 3-year, 10-year and 20-year maturities will be reopened.
The Central Bank remained on the sidelines and refrained from conducting any open market operations, allowing the improved liquidity conditions to prevail.
Bank of Uganda will conduct a treasury bond auction on October 7, where the benchmark 3-year, 10-year and 20-year maturities will be reopened.