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

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

Ugandan shilling up vs dollar, seen stable on rates 2-April-2012

The Ugandan shilling edged higher against the dollar on Wednesday, buoyed by greenback supplies from offshore investors participating in a Treasury bill auction and the central bank's decision to keep interest rates unchanged.

Traders said the Bank of Uganda (BoU)'s decision to leave its key lending rate unchanged for a second straight month was likely to keep the local currency stable in the coming weeks.

The BoU held its Central Bank Rate for May at 21 percent despite a consumer price index fall last month, saying risks from high food prices and a possible oil supply shock still posed inflationary pressures.

Commercial banks in Kampala quoted the currency at 2,490/2,500 to the dollar, stronger than Monday's close of 2,498/2,508.

Markets in Uganda were closed on Tuesday for a holiday.

"Most corporates exhausted their (dollar) demand at month-end, while we're seeing some conversions by offshore investors who participated in the auction," said Ahmed Kalule, a trader at Bank of Africa.

"So the two factors have helped push up the shilling a little bit," said Kalule.

Results for a 120 billion shillings ($48 million) Treasury bill auction on Wednesday showed heavy demand for the 364-day paper, even though the short end was snubbed.

The Ugandan currency has stabilised at around 2,500 to the dollar for about a month, ever since the central bank halted its monetary policy easing cycle in April.

Analysts say the central bank's decision to extend its policy easing pause is likely to maintain offshore investor appetite for Ugandan debt and keep the shilling supported.

"It was a relief for the market because possibly a cut would have been premature," said Leonard Ogenworth, a trader at Housing Finance Bank.

"So I am seeing market sentiment growing confident for the shilling, but the overall tone going forward should be 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