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Ugandan shilling weaker on dollar demand from banks, manufacturers
December 8, 2014 / 11:08 AM / 3 years ago

Ugandan shilling weaker on dollar demand from banks, manufacturers

KAMPALA, Dec 8 (Reuters) - The Ugandan shilling 
weakened on Monday on dollar demand  from commercial banks and
manufacturers but a mop up of excess liquidity by the central
bank was seen offering some support. 
    At 1013 GMT commercial banks quoted the shilling at
2,760/2,770, weaker than Friday's close of 2,753/2,763.
    "Pressure is being exerted mainly by commercial banks
although a bit of demand is also coming from  manufacturers,"
said Faisal Bukenya, head of market making at Barclays Bank. 
    "We anticipate more pressure on the shilling... but it might
be limited because of today's repo."
    The central bank or Bank of Uganda (BoU) removed a total of
386.5 billion shillings ($140.04 million) from the money market
via a seven-day repurchase agreement. By absorbing excess
liquidity, the bank makes it relatively more expensive to hold
long dollar positions, which lends support to the shilling.
    Traders said commercial banks are likely to stock up on the
greenback as they seek to square positions before the year-end.
    The shilling has weakened 8.7 percent against the greenback
so far this year, largely on dollar buying from importers.
        
UGX Spot Rate..... 
Ugandan Shilling Money Guide.... 
Calculated Cross Rates.......... 
Deposits..................... 
Deposits & Forwards............. 
Uganda Equities Guide....... 
Uganda All Share Index........ 
Shilling background ..... 
Ugandan Debt Guide............ 
All Uganda Bonds............. 
Uganda T-Bills.............. 
Uganda Benchmark............. 
Central Bank ................ 
Ugandan Contributor Index.... 
Uganda Coffee Prices....... 

(1 US dollar = 2,760.0000 Ugandan shilling)

 (Reporting by Elias Biryabarema; Editing by James Macharia)

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