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 Tuesday Absa market report.
The bank’s Head of Trading 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.
In the money markets, liquidity conditions remained comfortably balanced. Consequently, overnight, and one-week interest rates averaged 9.5% and 9.75%, respectively. Looking ahead, the Bank of Uganda is scheduled to conduct a Treasury bond auction this Wednesday, with a total of UGX 990 billion on offer through the re-opening of the benchmark 2-year, 5-year, and 15-year maturities.
Interesting read. The fintech space in Uganda needs more discussion like this — digital lending is opening doors for people who were previously excluded from traditional banking.