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UPDATE 1-Uganda central bank sells dollars to banks to support shilling
January 22, 2015 / 8:37 AM / 3 years ago

UPDATE 1-Uganda central bank sells dollars to banks to support shilling

(Adds quotes, details)
    By Elias Biryabarema
    KAMPALA, Jan 22 (Reuters) - Uganda's central bank on
Thursday sold an undisclosed amount of dollars for a fifth time
this month to slow the shilling's depreciation after the local
currency came under pressure from heavy dollar demand.
    At 0800 GMT, commercial banks quoted the shilling at
2,895/2,905 against the dollar after pulling back from 
2,900/2,910, the level that triggered Bank of Uganda (BoU)'s
intervention. 
    The shilling is now down 4.3 percent against the greenback
so far this year, just shy of its lifetime's low of 2,910/2,920
reached on Sep. 23, 2011.
    "The market was receiving heavy demand (for dollars) from
telecoms players," said Isaac Iga, chief dealer at Orient Bank.
    "I think the central bank is determined to fight off a
certain level they don't want the shilling to weaken below," he
said, adding that the BoU appeared uneasy with the shilling
weakening below the 2,900 level to the dollar. 
    The local currency has been under sustained pressure this
month, largely fuelled by interbank demand as commercial banks
build long dollar positions on fears of a likely U.S. interest
rate hike. The greenback's global strength has exacerbated
market jitters.
    BoU has said speculation was also behind some of the
depreciation and vowed to tame local currency volatility.
      
   UGX Spot Rate..... 
   Ugandan Shilling Money Guide.... 
   Calculated Cross Rates.......... 
   Deposits..................... 
   Deposits & Forwards............. 
   Uganda Equities Guide....... 
   Uganda All Share Index........ 
   Shilling background ..... 
   Ugandan Debt Guide............ 
   All Uganda Bonds............. 
   Uganda T-Bills.............. 
   Uganda Benchmark............. 
   Central Bank ................ 
   Ugandan Contributor Index.... 
   Uganda Coffee Prices....... 

 (Writing by George Obulutsa; Editing by James Macharia)

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