On Monday, the Uganda shilling maintained a steady position, trading within a narrow range and keeping the exchange rate below 3,700 shillings per US dollar.
According to Catherine Kijjaggulwe, Head of Trading at Absa, the currency market saw balanced activity at the start of the week. The presence of month-end financial flows and consistent commodity transactions helped meet the demand in the market. By the end of the trading session, the shilling was valued at between 3,688 and 3,698 shillings per dollar.
Money markets showed good liquidity, with overnight yields averaging 9.77%, as noted by Kijjaggulwe.
Last week, the Bank of Uganda conducted a treasury bill auction. The yields for the 91-day, 182-day, and 364-day treasury bills were recorded at 9.846%, 13.000%, and 13.503%, respectively. The auction, held on July 17, 2024, raised 546.76 billion shillings, surpassing the offered amount by 191.7 billion shillings. The accepted amounts were 51.19 billion shillings for the 91-day bill, 70.93 billion shillings for the 182-day bill, and 424.64 billion shillings for the 364-day bill.
