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

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

Uganda shilling stronger against US Dollar 20-05-2012

The Ugandan shilling gained 0.6 percent against the dollar on Friday, helped by inflows from coffee exports but traders expect some weakening next week in light of falling government security yields.

At 1125 GMT commercial banks in Kampala quoted the currency
of east Africa's third largest economy at 2,475/2,485, stronger than Thursday's close of 2,490/2,500.

"We've had inflows from coffee exporters while on the other
hand (dollar) demand has been soft from both the interbank and corporates," said Ahmed Kalule, a trader at Bank of Africa.

"So the shilling has drawn strength from that imbalance but
next week the market tone will be set when inflation data comes out."

Uganda's statistics office is due on Thursday to release
May's consumer price index data.

Year-on-year inflation edged down to 20.3 percent last month
from a revised 21.1 percent in March. Traders are watching for any further fall in the rate, which could put pressure on the central bank to start cutting its key lending rate.

Although inflation eased last month, the Bank of Uganda held
its key policy rate at 21 percent this month from April, citing a worrying oil price outlook and soaring food costs.

An unexpected rate cut and a slump in yields in March
sparked panic in the market and caused the shilling to plunge to its 2012 low of 2,620 against the dollar.

Faisal Bukenya, head of market making at Barclays Bank, said
a slump in yields at this week's Treasury Bond auction was
likely to cool investor appetite for Ugandan debt which could
erode confidence the shilling.

"From the bond auction results, I see yields at next week's
Treasury bill sale holding steady or edging lower,' he said.

"Clearly such a trend would create problems for the

Bank of Uganda is due to sell a total of 120 billion
shillings ($48.07 million)worth of Treasury bills of all
maturities on Wednesday.


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