The Uganda shilling posted a modest appreciation in today’s trading session, supported by muted dollar demand in the interbank market, according to Thursday Absa Bank market report.
The local currency also benefited from sustained inflows from remittances and the commodities sector, closing at 3715 / 3725, firmer than the previous session’s close of 3720 / 3730.
Liquidity conditions in the money market improved further, bolstered by repo maturities which triggered Bank of Uganda to conduct Open Market Operations absorbing excess liquidity via the sale of Bank of Uganda bills and 7-day mop up repo. A total of UGX 727.6 billion was mopped out.
