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

ad. Buy Grade A Premium Uganda Vanilla Beans NOW Available for Export  

NGO inflows tame Uganda shilling free-fall

Monday June 13, 2011

The Uganda shilling traded firmly against the greenback, but a tad weaker in 2392/2408 range during last week in a market characterized with sizable trades on both counters.

The energy sector dominated the market with their usual tickets while relative inflows from non-governmental organisations helped to tame what could otherwise have been a shilling’s free-fall, Chris Rwengo, the East Africa area head of forex trading at Standard Chartered Bank, noted in a weekly report.

“The Central Bank remained quiet primarily on the fact that the currency pair has been trading side-ways with minimal volatility.

“That being the carrot, the cane becomes effective as there seems to be very little standing on the way for the pair to trade to the higher highs and even whereas 2410 may form the first resistance, in absence of intervention, we could easily visit 2420-30 areas,” the report pointed out on Friday.

“Market players are now starting to feel the need to buy on any dips with one eye focusing on any Central Bank action,” the forex report observed.
The shilling reached its lowest levels against the dollar for more than two months on Friday on energy sector demand for the greenback, traders said.

Commercial banks posted the shilling at 2,403/2,408 -- the lowest level the local unit, which is seen as undervalued by the Central Bank -- has reached against the dollar since it was traded for 2,410 on March 23.

“We have seen a bit of demand filtering through from the energy sector and some other corporates,” said Phillip Ssali, the corporate dealer at Standard Chartered Bank Uganda.

The shilling has traded in a tight range for the last month after a period of political unrest, gradually approaching the key psychological 2,400 level to the greenback.

The Bank of Uganda intervened in the market last month, selling dollars to bring the shilling under 2,400 and has historically come into the market at that level.

But traders disclosed that officials at the bank may be holding off as they were expecting capital inflows from as yet unknown sources.

Most of the regional currencies have suffered turbulent trading against the US dollar for better part of this year due in part to the dwindling forex inflows.

The New Vision Newspaper

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.

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
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)

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.

Please enter the word that you see below.


Uganda Currency