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

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

Uganda Shilling fights for own life

Thursday July 21, 2011

KAMPALA-The shilling slipped against the dollar for a second straight session on thin volumes on Tuesday, but some traders said an upcoming Treasury bond auction would offer the currency some support.

Commercial banks in Kampala quoted the local currency at 2,597/2,607 against the dollar, weaker than Monday’s close of 2,580/2,590.

“We’re moving towards the end of month and we normally have a surge in dollar demand, which exerts pressure on the shilling and that’s what we’re seeing now,” said Lucas Ochieng, a treasurer at Orient Bank.

Unprecedented demand for the greenback and tight supply, an ailing shilling in neighbouring Kenya -- the region’s biggest economy -- and speculative trading drove the shilling through a series of record lows in the first half of the year.

It hit an all-time low of 2,710 on June 30 before the Central Bank, flexed its muscles and sold off hard currency, stemming the losses.
“There’s huge demand for the greenback in the interbank (market) which is undermining the shilling now, but it will probably be short-lived,” said Faisal Bukenya, the head of market-making at Barclays Bank.

Bukenya predicted substantial offshore interest in Wednesday’s auction of two-year bonds worth sh85b.

Bank of Africa said in a market report that it saw 2,650 as the next key psychological level.
The Central Bank has shown willingness to sell dollars at the 2,600 level.

“Inflows will not be enough to sustain the consistent and sustained demand from the manufacturing, petroleum and telecom sectors,” Barclay’s Bank said in a financial note it released late to clients on Monday.

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