The Uganda shilling extended its losses today touching the session’s low of 3930 / 3940 in the mid-trading hours of the day before retracing, closing the day at UGX 3920 / 3930 levels, according to Absa Bank Tuesday market report.
Demand was primarily driven by corporates in the energy and manufacturing sectors, with offshore participants still involved in the mix and adding further pressure on the currency.
Money markets remained liquid today with overnight funding rates averaging at 9.54%. Activity in the secondary market was relatively subdued, with most participants remaining on the sidelines. Bank of Uganda this afternoon has announced an increase in the Cash Reserve Ratio for commercial banks by 250 basis points to 13.50%.
