The Uganda shilling extended its losses today touching the session’s low of 3920 / 3930 in the mid-trading hours of the day before retracing, closing the day at UGX 3890 / 3900 levels, according to Absa Bank daily market report.
Demand was primarily driven by corporates in the manufacturing, energy and telecom sectors, with offshore participants later joining the market and adding further pressure on the currency.
Money markets remained liquid today, prompting the Central Bank to absorb excess liquidity through a 3-day mop-up repo. Overnight funding rates averaged 8.75%. Activity in the secondary market was relatively subdued, with most participants remaining on the sidelines.
