Slow trading activity was observed during Tuesday’s session, with the Ugandan Shilling closing at 3690/3700 levels, slightly up from the day’s opening at 3688/3698 against the US dollar. According to traders from Absa, the local currency remained stable within these ranges. Month-end flows and commodity flows were balanced with dollar purchases throughout the day.
Business activity in Kampala’s central business district was relatively low in the morning due to the deployment of security forces. They were present to counter planned protests by a section of youth. The protesters were voicing their concerns about what they describe as rampant corruption and abuse of public offices by some elected leaders.
In the money markets, liquidity was prevalent, with overnight yields averaging 8.77%. The Bank of Uganda has scheduled a treasury bill auction for July 31, 2024.
On Monday, the Uganda shilling continued to trade within a narrow range, maintaining its rate below 3,700 against the US dollar. Catherine Kijjaggulwe, head of trading at Absa, noted that the opening session of the week saw balanced activity. Month-end flows began to trickle into the market, and healthy commodity flows comfortably covered the demand seen during the session.
By the end of Monday’s session, the local currency closed at the 3688/3698 levels against the dollar. In the money markets, liquidity was ample, with overnight yields averaging 9.77%.
Last week, the Bank of Uganda held a treasury bill auction. The yields for the 91-day, 182-day, and 364-day tenors were 9.846%, 13.000%, and 13.503% respectively, according to auction results. The Bank of Uganda raised sh546.76 billion from the auction on July 17, 2024, which was sh191.7 billion more than the offered amount. The accepted amounts were sh51.19 billion for the 91-day bill, sh70.93 billion for the 182-day bill, and sh424.64 billion for the 364-day bill.
We will provide updates on the currency markets throughout the week, with a comprehensive wrap-up on Sunday.
