KAMPALA — On Wednesday, the Uganda shilling showed a slight decline, closing at the 3724/3734 levels compared to its opening levels of 3717/3727.
Catherine Kijjaggulwe, the head of trading at Absa, attributed the shilling’s marginal weakness to a higher demand for dollars, particularly from the energy and manufacturing sectors. She noted that while month-end inflows and commodity inflows provided some support, they were slightly outweighed by this increased dollar demand.
Looking ahead, the Uganda shilling is expected to trade within the range of 3700 to 3790 throughout the week.
In related financial news, the Bank of Uganda conducted a treasury bill auction on Wednesday. The auction results showed the following average yields for different tenors:
- 91-day: 9.846%
- 182-day: 13.000%
- 364-day: 13.753%
The money markets were relatively liquid during the session, with overnight yields averaging 9.93%, according to Absa. This liquidity reflects a stable market environment despite the slight weakening of the shilling.
