The Uganda shilling relatively stable

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The Uganda shilling remained relatively stable lifted by tight liquidity conditions in the money markets and low Foreign Exchange demand as market players focused on mid month tax payments.

The unit traded in a range of 3360/3380.

shilling

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In the primary bond market, yields went up to 17.217% and 17.501% for the 5 and 15 year. Amount on offer was 190 billion but Bank of Uganda took a little over that amount.

In the international currency markets, the British pound was wobbly after sessions of strong gains as new administration took office. The markets have shifted focus towards the Bank of England prospects of raising the policy rate at its next meeting.

shilling2

Meanwhile the dollar drifted sideways as markets were divided on the possibility of at least one rate hike this year.

Outlook indicate that the shilling will likely hold at the current levels with a marginal bias for strengthening as demand is expected to remain low.

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