The Ugandan shilling continued to weaken against the dollar on Thursday, starting the day at 3,715-3,725 and closing at 3,732-3,742. This decline was driven by high demand from interbank and corporate sectors, which surpassed the available dollar supply.
Money markets remained liquid, with overnight yields averaging 9.22%, according to data from Absa.
The Bank of Uganda is preparing for a treasury bill auction on July 31, 2024. In August 2024, it plans to offer three treasury bonds to raise approximately UGX 950 billion for the fiscal year budget. The bonds include a 3-year note with a 14.125% yield, a 10-year bond with a 14.25% coupon rate maturing in 2034, and a 20-year bond with a 15% coupon rate maturing in 2043.
Table: Currency and Money Market Data
| Date | Opening Rates (UGX/USD) | Closing Rates (UGX/USD) | Overnight Yields | Upcoming Treasury Bonds |
|---|---|---|---|---|
| July 25, 2024 | 3,715-3,725 | 3,732-3,742 | 9.22% | 3-year note (14.125% yield) |
| 10-year bond (14.25% coupon rate, matures 2034) | ||||
| 20-year bond (15% coupon rate, matures 2043) |
