Ugandan shilling claws back early losses, T-bill sale eyed

Mon Mar 17, 2014 6:32am EDT

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By Elias Biryabarema
    KAMPALA, March 17 (Reuters) - The Ugandan shilling 
clawed back early losses after the central bank mopped up excess
liquidity, traders said.
    Interbank demand for dollars was driven by local commercial
banks bolstering positions after the central bank on Friday
raised the minimum amount of foreign exchange that can be bought
or sold from the central bank or within the interbank market.
    By 0950 GMT, banks traded the shilling at 2,520/2,530,
matching Friday's closing price. It had fallen to 2,525/2,530. 
    "The central bank has done a repo (repurchase agreement) of
236 billion (Ugandan shilling)," Crane Bank trader Shahzad
Kamaluddin said. "There's also the expectation the auction we
have this week will boost dollar supplies." 
    The Bank of Uganda (BoU) is due to sell a total 165 billion
shillings ($65.48 million) worth of 91-, 182- and 364-day
Treasury bills on Wednesday.
    Strong foreign participation in government debt sales will
pump dollars into the market, offering support to the shilling.
    The BoU last week increased the minimum amount of foreign
currency local banks can buy or sell in a single transaction to
$250,000 from $100,000, requiring banks to hold more dollars.
     
   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 = 2,520 Ugandan shillings)

 (Editing by Richard Lough and Louise Ireland)
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