The Uganda shilling traded on a slightly weaker footing against the US dollar in today’s session, as corporate demand for the greenback outweighed the limited dollar inflows observed in the market, according to Absa Bank Uganda Tuesday market report.
With supply remaining relatively thin, the local unit came under mild depreciation pressure, pushing the USD/UGX pair higher. The pair eventually closed at 3915 / 3925 compared to yesterday’s close of 3910 / 3920.
In the money markets, liquidity conditions remained tight following the increase in the Cash Reserve Requirement (CRR) to 13.50%. The higher reserve requirement continued to constrain available funds, keeping interbank liquidity relatively scarce. Consequently, funding rates remained elevated, averaging around 11.50% during the session.
