The Uganda shilling strengthened modestly against the dollar in Monday’s trading session, appreciating from opening levels of 3915 / 3925 to close at 3910 / 3920.
According to Absa Bank daily market report, the gain was primarily driven by subdued dollar demand, coupled with tight shilling liquidity conditions.
In the money market, liquidity remained constrained following the recent increase in the Cash Reserve Requirement (CRR) to 13.50%. As a result, funding conditions tightened further, with overnight rates averaging around 11.50% during the session.
Bank of Uganda will return to the Primary market to conduct a Treasury Bill auction this Wednesday worth Ugx 350 billion.
