Uganda Shilling Shows Minor Strength in Friday’s Trading Session
On Friday, the Uganda shilling started the trading session at 3730/3740 against the US dollar and ended slightly stronger at 3718/3728. The session was generally quiet with limited trading activity. However, some month-end inflows and commodity transactions provided support to the local currency.
Throughout the week, the shilling experienced a slight decline due to increased demand from interbank market participants. On Friday, the Bank of Uganda conducted significant operations to manage liquidity. The central bank absorbed UGX 539.5 billion through a six-day Repo and UGX 250 billion through a Bank of Uganda Bill.
Catherine Kijjaggulwe, the head of trading at Absa, indicated that there is an expectation for increased demand in August.
Looking ahead, the Bank of Uganda will conduct a treasury bond auction on August 7, 2024, for three-year, ten-year, and twenty-year bonds. Additionally, the Monetary Policy Committee is set to meet on August 14, 2024.
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