Find visitors' favorite businesstravel Hotels And.... Book your best!

Uganda Shilling Weakens Against Dollar 20-April-2012

The Ugandan shilling traded flat against the dollar on Friday in thin volumes and traders forecast the local currency was likely to edge lower, undermined by month-end greenback demand.

At 0915 GMT commercial banks in Kampala quoted the shilling at 2,510/2,520, unchanged from Thursday's close.

"Today the shilling is expected to trade range bound. However we expect to see a weaker shilling next week as corporates fulfill their month-end demand," said a market brief from Stanbic Bank Uganda.

The local currency has generally stabilised since the central bank paused its policy easing stance after its surprise cut in a key lending rate and a slump in debt yields pushed the shilling to a 2012 low of 2,620 last month.

The Bank of Uganda (BoU) left its benchmark Central Bank Rate (CBR) unchanged at 21 percent this month from March despite a steep fall in inflation, which dropped to 21.2 percent last month from February's 25.7 percent.

Traders also said inflows from offshore investors participating in a Treasury bond auction were likely to offer some support to the shilling.

"If they (foreign investors) take part in significant numbers then their dollars might soak up some of the pressure on the shilling," said David Bagambe, a trader at Diamond Trust Bank.

BoU is scheduled to auction 100 billion shilling ($40 million) worth of three-year Treasury bonds with a fixed coupon of 10.25 percent on Wednesday.

With a weak export base, Uganda relies significantly on foreign investors buying its debt to support its currency against the greenback.

A trader at a leading commercial bank said market confidence in the shilling was also being clouded by mounting conflict between South Sudan and Sudan. South Sudan separated from the rest of Sudan last July under the terms of a 2005 peace deal.

"South Sudan is Uganda's major trading partner and if war breaks out and this trade is severed, the shilling is sure to take a massive hit," he said.

Reuters

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Africa Uganda Currency and Forex News .



Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page

then...

feel free to ask our business travel consultants.





Book a Prisons & Correctional
Charity Tour


Farmland for Sale
Prime Commercial Property
Entebbe Rd Land 4 Sale
Over 20 Farmland Parcels
Property & Plots of Land

Uganda Online SuperMarket
africaug.com
Online SuperMarket

Uganda Coffee Safari
Book My Coffee Tour

Uganda Honey
Uganda HoneyComb

Subscribe to our Business Travel Newsletter


Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Africa Uganda Business Travel News Digest.

Hotel Booking

Car RentalCar Hire

Africa Uganda Shipping & Handling ServicesShipping & Handling Services


Our Sponsorship Policy


Apple Guavas available
Africa Uganda Plants GuideAfrica Plants Guide

Charity Investment Guide
Changing Lives

Africa Uganda SMS Guide
Africa Bulk SMS

Poultry Investment Guide
Poultry Business Guide

Related Pages



Uganda Hotels Directory

Uganda Hotels Booking Guide


Houses U can buy Uganda Real Estate Guide Industrial/Farmland Deals

Uganda Real Estates Guide


The Mountain Gorilla

Uganda Safari Guide

Uganda Weather Today





Book My Hotel

Please note that all fields followed by an asterisk must be filled in.
YES
NO
YES
NO

Please enter the word that you see below.

  



Uganda Currency

Ex-guide