The Uganda shilling strengthened against the U.S. dollar, reversing some of the losses recorded earlier as dollar demand softened following market turbulence triggered by tensions in the Middle East.
According to Absa Bank Uganda Thursday market report, increased dollar sales in the interbank market supported the local currency, with the shilling closing at 3680/3690 compared to the opening levels of 3690/3700.In the money markets, liquidity conditions remain ample, supported by recent maturities and coupon redemptions.
As a result, overnight and one-week rates averaged 9.75% and 9.90%, respectively. The Bank of Uganda remained active in managing excess liquidity through its weekly open market operations, mopping up approximately UGX 2 trillion via BoU Bills and REPO instruments.
