The Uganda shilling remained broadly stable against the dollar but exhibited signs of vulnerability, trading within the 3728 – 3738 range throughout the day, according to Wednesday Absa Bank Uganda market report.
The Head of Trading at the Bank Richard Nsubuga says Dollar inflows from commodity exporters and charitable organizations continued to provide support; however, these were largely absorbed by demand from corporates in the manufacturing and energy sectors.
Money market liquidity remained comfortably balanced, with overnight rates averaging 9.09%. At today’s Treasury bond auction, the Bank of Uganda reopened the benchmark 2-year, 5-year, and 15-year bonds, offering UGX 990 billion.
Strong investor demand, supported by ample liquidity and coupon reinvestment flows, saw accepted bids reach UGX 1.05 trillion. The bonds cleared at 11.70% (2-year), 13.75% (5-year), and 15.20% (15-year).
