Uganda Shilling, U.S. Dollar Trading Remain Tight

The Uganda shilling has remained weaker against the US dollar during the five days of trading that ended on Nov. 21. Analysts say consumers of goods that are transacted in the popular unit [the US dollar] or buyers of imported goods might have to pay much more compared to the previous months when the local unit had stabilized below 2700. James Mutuku, the head of financial markets at Standard Chartered Bank said, during the week, the shilling was range-bound against the US Dollar with weakening trends holding to close at 274555.

“The market saw sustained US Dollar buying interest on the corporate front with little inflows to support the Uganda Shilling,” Mutuku said, adding yields were flat with minimal interest in the secondary market as investors preferred to wait for the primary issuance next week. The Central Bank announced 2-year reopening and 15 year bonds to be issued on Dec. 3, Mutuku said, and we expect good uptake on both tenors, he added. Going forward, he said, the pair is expected to trade sideways next week in the 2735-65 range.

Source : The Independent

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