Uganda Shilling Shows Slight Weakness Post-Christmas Break
The Uganda shilling experienced a minor weakening trend in the brief trading week following Christmas. Starting the week at levels of 3762/3772 on Wednesday, it concluded at 3780/3790 against the dollar by the end of business on Friday.
Analysts attribute the slight weakening to increased demand from both interbank transactions and corporate entities. Catherine Kijjagulwe, the head of trading at Absa, notes that inflows observed before Christmas have diminished due to the closure of NGOs for the festivities, and commodity flows are gradually entering the market.
As the New Year break concludes and activities resume, analysts anticipate that the currency is likely to undergo further sessions of volatility.
