Local Currency Weakens Amidst Dollar Demand
During Wednesday’s trading session, the local currency experienced a decline, closing weaker at 3830/3840 compared to the day’s opening of 3818/3828 due to heightened demand for the dollar. Despite inflows, robust interbank and corporate demand outweighed, exerting pressure on the shilling.
The money markets displayed reasonable liquidity throughout Wednesday’s session, with overnight yields averaging at 10.43%, as reported by Absa.
The Bank of Uganda conducted a Private Placement Treasury Bond auction, targeting a total amount of sh 1.5 trillion, with bond tenors spanning 3, 5, 10, 15, and 20 years.
