By: Stephen Kaboyo
The Uganda shilling was range bound but remained on the edge as pockets of demand emerged mainly from commercial banks and importers.
The unit held at 3765/75 bid and ask.
In the Kenyan market, the currency continued to lose ground trading at 131.18, undermined by the mismatch between demand and supply as the black market for dollars intensified following capital controls introduced by Central Bank while ago.
In the fixed income market, the 3 and 15 year bond yields held at 14.000% and 17.000% respectively. Bank of Uganda continued their efforts to manage rates by eliminating outlier bids and only accepted 326 billion out of 480 billion that was on offer.
In global markets, most emerging market currencies traded in a narrow range with the EMC currency index holding flat against a muted US dollar after the Federal Reserve raised its benchmark rate by 25 bps.
In the coming days, the shilling movement will largely be dictated by local demand conditions that remain elevated Events in Kenya are also beginning to cloud the outlook.
also read: Is MTN Uganda on the verge of becoming a bank? Are Ugandan banks ready for this monster?
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