The Uganda shilling is seen stable over the next week with a firmer bias on the back of diminishing corporate demand for foreign exchange after falling by 1.2% in the week [from Sept. 22-26] and likely inflows from offshore investors at a Central Bank auction for Treasury bills. Bank of Uganda is due to sell Shs 145 billion ($55 million) worth of Treasury bills next week which could spur inflows from offshore investors.
James Mutuku, the head of financial markets at Standard Chartered Bank says the unit against the US dollar is expected to trade in the range of 2620-2660 in the coming week. At the weekly close on Friday, Sept. 26, commercial banks quoted the shilling at 2,6482,658, much weaker than last week’s close of 2,6152,625. Mutuku said on the buy-side, corporates have slowed down on their demand at the current elevated levels and are likely to sit-out of the market until lower levels are seen in the pairs’ trading.
Source : The Independent