The Uganda shilling opened the week trading firmer closing the day’s trading at 3925 / 3935 versus the day’s opening of 3930 / 3940, supported by subdued demand for hard currency amidst pockets of inflows from commodity exporters and charities.
According to Absa Bank daily market report, the shilling remains susceptible to depreciation pressures stemming from offshore investor demand and ongoing uncertainties related to the Middle East conflict.
Money markets were liquid with overnight funding rates averaging at 9.42%. Activity in the secondary market was relatively subdued, although pricing retained a firmer bias, with offers generally improving as most market participants chose to remain on the sidelines.
Bank of Uganda will conduct Treasury bond auction this Wednesday where a new 15-year bond will be issued together with the re-opening of the benchmark 2-year, 5-yerar and 25-year maturities.
