Ugandan shilling firms on slow demand, dollar inflows

The Ugandan shilling strengthened on Thursday due to lower importer demand for dollars as well as a good supply of the greenback from investors abroad buying domestic government debt.

At 0912 GMT, commercial banks quoted the shilling at 3,310/3,320, firmer than Wednesday’s close of 3,320/3,330.

“Appetite for dollars is tailing off especially from merchandise importers. That’s strengthening the shilling,” said Ali Abbas, trader at Crane Bank. “On the other hand, there are inflows from offshore investors.”

This week, the central bank sold 2- and 5-year Treasury bonds worth a total of 180 billion shillings ($54.41 million).

Traders say yields on Ugandan debt are still relatively high and attracting strong interest from offshore investors.

Market players said they expected the shilling to post more gains in the coming days, partly underpinned by Ugandans working abroad who will visit for the holidays.

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uganda Forex markets ugandan shilling

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