Ugandan shilling weakens as banks cover short positions

KAMPALA, April 14 Mon Apr 14, 2014 8:01am EDT

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KAMPALA, April 14 (Reuters) - The Ugandan shilling edged lower on Monday as banks bought dollars to cover their short positions. Traders said purchases of local debt could support the shilling later this week.

At 1115 GMT, commercial banks quoted the shilling at 2,525/2,535, slightly down from Friday's close of 2,515/2,525.

"This pressure will be short-lived because we're looking forward to inflows from this week's (debt) auction," said Manohar Miryala, head of treasury at Crane Bank.

The central banks is scheduled to sell a total of 165 billion Ugandan shillings worth of Treasury bills of all maturities on Wednesday.

Miryala said the shilling was likely to stabilise at about 2,500 because policymakers want to prevent it from strengthening beyond that, to protect exporters.

On Friday, the central bank bought an unspecified amount of dollars, to curb gains by the local currency.

The shilling is largely stable against the greenback in the year to date on the back of subdued dollar demand from firms and inflows from offshore investors buying government debt.

UGX Spot Rate.....

Ugandan Shilling Money Guide....

Calculated Cross Rates..........

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Uganda Equities Guide.......

Uganda All Share Index........

Shilling background .....

Ugandan Debt Guide............

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Uganda Benchmark.............

Central Bank ................

Ugandan Contributor Index....

Uganda Coffee Prices....... (Reporting by Elias Biryabarema; Editing by Duncan Miriri, Larry King)

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