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

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

Uganda Shilling Climbs 3rd Consecutive Day Against US Dollar


KAMPALA, April 4 (Reuters) - The Uganda shilling climbed for a third consecutive day against the dollar on Wednesday, lifted by offshore investors converting their greenbacks to participate in a Treasury bill auction, and depressed corporate demand for the U.S. currency.

At close of trade at 1300 GMT, commercial banks in Kampala quoted the shilling at 2,480/2,490, stronger than Tuesday's close of 2,490/2,500.

Traders said they expected more gains for the shilling on the back of a local currency liquidity squeeze. It is 1.5 percent stronger than the dollar in the year to date.

The Bank of Uganda sold Treasury bills on Wednesday worth 120 billion shillings ($47.90 million), with the 91-day paper yield edging up to 18.1 percent from 17.4 at the previous auction.

"The shilling has pulled up a little because we've been having conversions from offshore guys looking to pay for their successful bids in the auction," said Ahmed Kalule, a trader at Bank of Africa Uganda.

"(Dollar) supplies from these offshore investors are currently weighing against low corporate demand thus the upward shilling movement."

The local currency has generally strengthened against the dollar since the central bank paused its monetary policy easing cycle on Monday.

After trimming its policy rate by 1 percentage point in both February and March, the central bank left the rate unchanged for April at 21 percent from last month despite a steep fall in inflation.

Uganda's year-on-year inflation dropped to 21.2 percent last month from 25.7 in February but the bank says upward price pressures remain from a weak shilling and high food prices.

"We had anticipated rates to remain in the same range overall which is what happened so I guess that sent an encouraging signal to offshore guys," said Faisal Bukenya, head of market making at Barclays Bank Uganda.

"There's also a shilling liquidity squeeze in the market and that's likely to send it further up (stronger) in the coming days."

A slump in Ugandan debt yields and an unexpected rate cut sent the shilling plummeting to its 2012 low of 2,620 on March 6 but analysts say this month's pause of the monetary easing cycle might spur a recovery. ($1 = 2505.0000 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.

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