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

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

Uganda Shilling Slides against US Dollar 15-May-2012

The Ugandan shilling weakened as much as 1.1 percent against the dollar on Tuesday, pressured by dollar demand from the energy sector, but traders forecast the local currency would rebound on potential dollar inflows after a Treasury auction.

At 1043 GMT commercial banks quoted the currency of east Africa's third-largest economy at 2,480/2,490, weaker than Monday's close of 2,460/2,470.

"We're seeing an uptick in demand from energy companies while supplies are fairly tight," said Ahmed Kalule, a trader at Bank of Africa.

"That mismatch has put the shilling on a weaker footing but we expect a recovery after tomorrow's auction."

Bank of Uganda (BoU) is due to sell Treasury notes of all maturities on Wednesday worth 120 billion shillings ($48.64 million).

Traders expect a healthy offshore investor participation, spurred by relatively high yields.

BoU held its key lending rate at 21 percent this month for a second time, even though inflation slowed down in April.

Analysts say the move was in part motivated by a desire to keep Uganda's debt yields relatively high to woo foreign investors whose dollars are a key prop for the shilling.

At the last auction on May 2 the 91-day paper returned a weighted average yield of 18.0 percent, down from 18.1 percent at the previous auction.

The local currency which is down 0.6 percent against the dollar this year, plummeted to its 2012 low of 2,620 on March 6 after a surprise rate cut and a slump in yields.

"The market's sights are now on the auction," said Denis Mashanyu, a trader at Standard Chartered Bank in Nairobi.

"And if significant inflows come in we might see a recovery but the overall outlook for the shilling is stable."


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