Uganda shilling holds its ground against dollar

Fri Jan 18, 2013 8:01am EST

KAMPALA, Jan 18 (Reuters) - Uganda's shilling held
steady against the dollar on Friday, helped by tight liquidity,
and traders said greenback inflows from exporters and aid
agencies were seen keeping the shilling on a firm footing next
week.
    At 1540 GMT, commercial banks in Kampala quoted the currency
of east Africa's third largest economy at 2,660/2,670 per
dollar, unchanged from Thursday's close. 
    "A couple of banks are still struggling with liquidity while
some dollar inflows are coming in from NGOs (non-governmental
organisations) and commodity exporters," said Thaib Lubega,
trader at Stanbic Bank.  
    "Both factors are helping the shilling trade steady against
the dollar." 
    Uganda is Africa's largest coffee exporter and also ships
out tobacco, tea and cotton. 
    The shilling, which is about 1 percent up against the U.S>
currency so far this year, has been helped by commercial banks
selling dollars and inflows from aid agencies. The currency had
plummeted to a 14-month low of 2,715/2,725 on Jan 7.
    "As long as the liquidity remains tight, the shilling will
trade in a narrow range and hold at the levels of 2,650/2,675 in
the coming days," said Stephen Kaboyo, managing director of
Alpha Capital Partners.
    Clouding the outlook, however, is the suspension of aid by
some key donors over corruption allegations and concerns a
general election in March in neighbouring Kenya might unleash
violence that cuts off vital trade routes to landlocked Uganda. 
    "In the short to medium term, unfavourable fundamentals and
the less impressive non fundamentals will continue to drive the
shilling into bearish territory," said Kaboyo. 
    
   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....... 

 (Reporting by Elias Biryabarema; Editing by Richard Lough)
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