Shilling watch: The Unit traded with a strong bias underpinned by low corporate demand

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By Stephen Kaboyo
The Uganda shilling traded with a strong bias underpinned by low corporate demand, partly attributed to Chinese New Year holiday whereby major import activity is almost at a standstill.



Trading was in the range of 3670/3680. In the shilling money market overnight and one week funds held at previous week’s level of 6% and 9% respectively.



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In the fixed income market, a 3 year with 100 billion on offer and 10 year with 180 billion were issued. The preset coupons were 11.000% and 14.250% while yields for both tenors held at 15.500%.
Accepted bids on three year were managed, and only 38 billion was accepted. On the 10 year curve, 252 billion was accepted, an amount that was over and above the offer amount of 180 billion.



In the regional markets, the Kenya shilling was firmer on flows from flower exports and offshore investors amid thin demand. Trading was in the range of 100.85/101.05



The global markets generally held steady with the greenback and the pound remaining intact but the Chinese virus anxiety was a source of concern in the markets. Among the majors currencies, only the Euro was on the back foot, hitting a 7 month low as the ECB took a cautious stance.



Outlook indicate that the shilling is set to maintain strength, with marginal gains expected on the back of month end hard currency flows from non-government organizations and commodity exports .

Alpha Capital Forex Bureau: For competitive Forex Rates VISIT Plot 12 KAMPALA ROAD-CHAM TOWERS SUITE 43: call: 0414-580619, 0392-612648

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