Uganda Shilling strengths against the dollar

Thursday May 26, 2011

The Uganda shilling traded flat yesterday, although some players said it may strengthen against the dollar in coming days due to inflows to pay salaries with non-governmental organisations.

At 10:50 GMT, commercial banks in Kampala quoted the local currency at 2,388/2,396 compared with Tuesday’s close of 2,385/2,395.

“Inflows are expected to improve in the last week of the month to cater for salaries and other month-end obligations,” said a market research note by Barclays Bank Uganda.

A sh95b two-year Treasury Bond was snapped up by investors yesterday and some traders had expected dollar inflows from offshore buyers to buoy the shilling.