The Uganda shilling held steady against the dollar in today’s trading session, supported by balanced demand and supply conditions in the market, according to Absa Bank Wednesday market report.
Dollar demand from corporates was adequately matched by available inflows, keeping the currency pair largely unchanged throughout the session. The dollar-shilling pair consequently closed at 3715 / 3725, similar to yesterday’s closing levels.
In the money markets, liquidity conditions improved modestly following month-end releases, providing some relief after a liquidity squeeze experienced in recent sessions.
As a result, funding rates eased, averaging around 10.50%, as access to liquidity improved. The central bank remained active in managing excess liquidity, mopping up UGX 287 billion through a one-day repo.
Yields at today’s Treasury bill auction moved higher on the benchmark 182-day and 364-day tenors, with a total of UGX 356.8 billion in face value accepted against an offered amount of UGX 300 billion, reflecting robust demand. The 182-day and 364-day maturities rose by 75bps and 50bps to clear at 10.751% and 11.501%, respectively, while the 91-day benchmark eased marginally to 9.699%.
