The Uganda shilling traded marginally weaker against the dollar, closing at 3725 / 3735 compared to an opening level of 3720 / 3730, according to Absa Bank Monday market report.
The modest depreciation was primarily attributed to light corporate demand for dollars in an otherwise subdued market, leaving the local unit susceptible to pockets of buying interest. Overall market activity remained muted, with limited interbank flows and cautious participation keeping the currency within a narrow trading range.
In the money markets, liquidity conditions remained comfortably balanced, supported by government fund releases made last week. As a result, overnight and one-week interest rates averaged 9.5% and 9.75%, respectively.
Despite the ample liquidity environment, the Bank of Uganda refrained from conducting liquidity management operations, allowing market dynamics to guide short-term funding rates. Bank of Uganda will conduct a Treasury bond auction this Wednesday where a total of UGX 990 billion will be offered re-opening the benchmark 2-year, 5-year and 15-year maturities.
Well said. Financial inclusion through mobile lending is one of the most impactful developments in Uganda’s economy right now.