BUY UGANDA VANILLA BEANS                                                                                                                                SOYBEAN OIL 

High Dollar demand from the Uganda Energy and Manufacturing Sectors Weigh in on Shilling


KAMPALA UGANDA - The Uganda shilling held steady on Friday but end-of-month dollar demand for dollars from the manufacturing and energy sectors is seen weighing on the local currency with greenback supplies tight, traders said.

"Activity is low on both counters so the shilling is oscillating in a narrow range," said Faisal Bukenya, head of market making at Barclays.

"Next week we expect heavy demand (for dollars) mostly from energy and manufacturing sectors which should tip the shilling."

At 0727 GMT commercial banks in Kampala quoted the local currency at 2,485/2,495, matching Thursday's closing price.

The shilling plummeted to a 2012 low of 2,620 earlier this month after the central bank surprised the markets by cutting its key policy rate for March, even though the east African country's inflation remaining above 25 percent.

"Next week we expect the shilling to remain on a weakening trend as end-of-month (dollar) demand continues," KCB Uganda said in a market briefing.

The bank said it expected the local currency to trade between 2,460 and 2,520.

Market players said a sustained increase in Ugandan debt yields, which edged up this week having steadily fallen since early February, could spur a return of offshore investors and support the shilling.

Rates went up across all tenors at a Treasury bill auction this week with the 91-day note inching up to 17.4 percent from 17.2 percent at the previous auction.

$1 = 2487.5000 Ugandan shillings


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


feel free to ask our business travel consultants.

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.