Uganda shilling held steady amid low corporate demand

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By Stephen Kaboyo

The shilling held steady amid low corporate demand. Non-governmental organizations and commodity export flows trickled in and kept the market in good supply.

Trading was in the range of 3690/3700. In the interbank money market, overnight funds traded at 6% while one week funds quoted at 9%.

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In the fixed income space, Bank of Uganda auctioned 3 and 15 year bonds with coupons of 11% and 14.25% Yields printed at 15% and 15.49%.
Both tenors were oversubscribed with BOU accepting more than was on offer.

In the regional currency markets, the Kenya shilling was on the back foot, undermined by a surge in demand on account of end month demand from importers and the energy sector . Trading was in the range of 102.65/85.

In the global markets, the US dollar pushed higher as markets closed in the thanksgiving holiday week, The greenback also drew traction on the positive tone on the trade negotiations between the US and China with markets growing more hopeful.

Outlook for the shilling indicate a stable unit with a mild chance of strengthening on the back of end month conversions and remittances from Ugandan’s living abroad ahead of the festive season .

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