(Kampala) – The Ugandan shilling gained 0.24% against the US dollar this week, closing at 3,660/3,670 on Friday, up from last week’s close at 3,669/3,679. Currency market analyst Richard Nsubuga indicated that the shilling is expected to remain stable between the 3,650 and 3,700 range in the near term, assuming no significant shifts in demand or supply.
Trading activity in the dollar market remained low on Friday, with traders winding down for the weekend, and the shilling held steady at 3,660/3,670 by the close of trading. The Absa market report pointed out that money market liquidity was tight, with overnight lending rates averaging 11.29%, which supported the shilling’s stability.
In the coming week, the Bank of Uganda is set to conduct a treasury bond auction on October 30, offering tenures of two, five, and fifteen years.
| Metric | Value |
|---|---|
| Shilling’s Closing Rate | 3,660/3,670 |
| Last Week’s Closing Rate | 3,669/3,679 |
| Weekly Appreciation | 0.24% |
| Overnight Lending Rate | 11.29% |
| Upcoming Treasury Auction Date | October 30 |
| Tenors Offered | 2, 5, and 15 years |
Nsubuga further highlighted that the currency’s stability will likely continue as traders and institutions await the upcoming treasury auction, which is expected to impact liquidity and possibly influence the shilling’s performance in the near term.
