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2 years ago
Ugandan shilling firms as dollar inflows meet low demand
November 3, 2015 / 12:18 PM / 2 years ago

Ugandan shilling firms as dollar inflows meet low demand

KAMPALA, Nov 3 (Reuters) - The Ugandan shilling firmed a notch on Tuesday as limited dollar inflows were met with meagre appetite and players eyed extra gains due to scant supplies of the local currency.

At 1054 GMT commercial banks quoted the shilling at 3,530/3,540, stronger than Monday's close of 3,535/3,545.

"We have some modest inflows coming into the market while (dollar) appetite on the other hand is flat," said Faisal Bukenya, head of market making at Barclays Bank.

Bukenya did not specify sources of the inflows but most of Uganda's foreign exchange earnings come from exports of coffee, cotton and other agricultural commodities.

A market note from Bank of Africa said commercial banks were building Uganda shilling positions "in preparation for possible liquidity tightness".

The local currency has broadly risen over the last two months, helped by the central bank's monetary policy tightening cycle.

A further surge in price pressures last month, traders say, is likely to push the Bank of Uganda (BoU) to tighten its policy stance again in December, potentially raising the cost of local currency funds.

BoU's benchmark Central Bank Rate (CBR) now stands at 17 percent, after being raised by 600 basis points this year.

So far this year the shilling is 21 percent weaker against the greenback.

UGX Spot Rate.....

Ugandan Shilling Money Guide....

Calculated Cross Rates..........

Deposits.....................

Deposits & Forwards.............

Uganda Equities Guide.......

Uganda All Share Index........

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Ugandan Debt Guide............

All Uganda Bonds.............

Uganda T-Bills..............

Uganda Benchmark.............

Central Bank ................

Ugandan Contributor Index....

Uganda Coffee Prices....... (Reporting by Elias Biryabarema; Editing by Edith Honan and Raissa Kasolowsky)

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