Ugandan shilling flat, eyes on lending rate decision, T-bill sale

Tue Apr 1, 2014 7:26am EDT

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By Elias Biryabarema
    KAMPALA, April 1 (Reuters) - The Ugandan shilling was
flat on Tuesday, with investors holding back before this week's
central bank rate decision after inflation ticked up and waiting
to see if a Treasury bill auction attracts foreign investors.
    At 1107 GMT commercial banks in Kampala quoted the currency
at 2,548/2,553, unchanged from Monday's close.
    The central Bank of Uganda (BOU) is due to announce its
policy rate for April on Wednesday, after year-on-year headline
inflation edged up to 7.1 percent last month from a revised 6.8
percent in February on the back of a surge in food prices.
    "Eyes are on what the central bank's likely move will be,"
said Ahmed Kalule, trader at Bank of Africa.
    Investors were also watching a T-bill auction on Wednesday
"to see whether it attracts foreign interest".
    The central bank is due to auction Treasury bills of all
maturities worth a total of 165 billion Ugandan shillings ($65
million).
    Stephen Kaboyo, managing director at Alpha Capital Partners,
said price rises coupled with pressure on the shilling could
encourage the central bank to raise rates by about 50 to 100
basis points from 11.5 percent.
    The shilling has been under pressure since some Western
nations suspended or diverted aid worth about $118 million in
protest at Uganda's anti-gay law.
   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 = 2548.0000 Ugandan Shillings)

 (Reporting by Elias Biryabarema; Editing by George Obulutsa and
Angus MacSwan)
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