The Uganda shilling traded slightly weaker against the dollar in today’s session, weighed down by strong interbank demand that exceeded available supply, according to Absa Bank Uganda Tuesday Market Report.
The local currency opened the day at trading at 3735 / 3745 and gradually weakened to close at 3740 / 3750. Market activity remained elevated, with increased participation from corporate players continuing to drive demand for foreign currency.
In the money markets, liquidity conditions continued to remain ample, with overnight and one-week funding rates averaging 9.75% and 10.00%, respectively. Despite the improved liquidity, the Central
Bank remained on the sidelines, refraining from any liquidity management operations. Bank of Uganda returns to the primary market on Wednesday to conduct a Treasury Bill auction where a total of Ugx 350 billion will be offer.
