Uganda shilling stands ground
Jul 27, 2011
Kampala-The Uganda shilling traded flat against the dollar for a second-straight session yesterday. It was also expected to remain in a narrow range due to subdued dollar demand.
Kampala-The Uganda shilling traded flat against the dollar for a second-straight session yesterday. It was also expected to remain in a narrow range due to subdued dollar demand.
Commercial banks in Kampala exchanged the local currency at Monday’s closing rate of 2,600/2610 per dollar.
The market had anticipated end-of-month dollar demand by corporates in the manufacturing and energy sectors, but traders said those expectations were yet to materialise.
“We are stuck in a stable and quiet market, primarily because corporate demand in key sectors remains subdued,†said Charles Katongole, a trader at Standard Chartered Bank.
“Corporates in energy and manufacturing might still come in with demand in the last few days of the month which could weaken the shilling, but otherwise the market will remain stable.â€
Traditional end-of-month dollar inflows from NGOs were weak this month, traders said.
Some market players may be betting on the dollar weakening, said Faisal Bukenya, the head of market-making at Barclays Bank.
“Even the oil sector has surprisingly stayed out,†he noted.
Reuters
Commercial banks in Kampala exchanged the local currency at Monday’s closing rate of 2,600/2610 per dollar.
The market had anticipated end-of-month dollar demand by corporates in the manufacturing and energy sectors, but traders said those expectations were yet to materialise.
“We are stuck in a stable and quiet market, primarily because corporate demand in key sectors remains subdued,†said Charles Katongole, a trader at Standard Chartered Bank.
“Corporates in energy and manufacturing might still come in with demand in the last few days of the month which could weaken the shilling, but otherwise the market will remain stable.â€
Traditional end-of-month dollar inflows from NGOs were weak this month, traders said.
Some market players may be betting on the dollar weakening, said Faisal Bukenya, the head of market-making at Barclays Bank.
“Even the oil sector has surprisingly stayed out,†he noted.
Reuters