(Kampala) – The Ugandan shilling opened the week on a stable note during Monday’s trading session, closing at slightly weaker levels amid tight liquidity conditions. The unit was trading within the range of 3655 to 3665 before ending the day at 3658/3668.
Traders reported that the currency’s performance was influenced by residual month-end inflows and consistent remittance flows. This activity created a minor demand that contributed to the shilling’s slight depreciation as it moved towards the closing levels.
On Monday, the market experienced tight liquidity, with overnight yields remaining elevated at approximately 11.50%, according to a report by Absa. This liquidity crunch may have affected trading dynamics and the overall market sentiment.
Looking ahead, the Bank of Uganda is scheduled to conduct a treasury bill auction on Wednesday, November 6, 2024. This auction is expected to attract attention from market participants, potentially impacting liquidity and interest rates further in the coming days.
