The Uganda shilling posted marginal gains against the dollar during today’s trading session, closing at 3685/3695 from opening levels of 3690 / 3700, according to Thursday’s Absa Bank Uganda Market report.
The local currency’s appreciation was primarily supported by muted dollar demand, and a sustained dollar supply from exporters.
Money market liquidity remained comfortable, bolstered by quarter-end government disbursements. Consequently, overnight and one-week interest rates averaged 9.75% and 7.00%, respectively.
The Bank of Uganda continued its liquidity management operations, to absorb excess funds from the markets through the sale of Bank of Uganda bills and conducting 7-day mop-up repo.
