Shilling loses against dollar
Nov 20, 2005
The shilling lost ground against the dollar as banks prompted by rioting in Kampala city piled into the market to buy dollars, dealers said on Friday.
By Paul Busharizi
The shilling lost ground against the dollar as banks prompted by rioting in Kampala city piled into the market to buy dollars, dealers said on Friday.
The shilling closed the week at 1,837/42 up from 1,823/28 in the previous week.
“The Uganda shilling opened the week at 1,820/30 with most banks holding short positions as the market anticipated an appreciation,†Stanchart’s Joran Ssozi said.
“However, following the unrest in the city earlier in the week, the shilling weakened to levels of 1,843 and 1,848 as banks rushed to cover their short positions,†he said.
Last week, riots broke out in Kampala city following the arrest and subsequent charging of opposition politician Kizza Besigye.
Corporate dollar demand remains largely absent from the market but dollar demand is expected to return and push shilling levels further down.
Ends
The shilling lost ground against the dollar as banks prompted by rioting in Kampala city piled into the market to buy dollars, dealers said on Friday.
The shilling closed the week at 1,837/42 up from 1,823/28 in the previous week.
“The Uganda shilling opened the week at 1,820/30 with most banks holding short positions as the market anticipated an appreciation,†Stanchart’s Joran Ssozi said.
“However, following the unrest in the city earlier in the week, the shilling weakened to levels of 1,843 and 1,848 as banks rushed to cover their short positions,†he said.
Last week, riots broke out in Kampala city following the arrest and subsequent charging of opposition politician Kizza Besigye.
Corporate dollar demand remains largely absent from the market but dollar demand is expected to return and push shilling levels further down.
Ends