Ugandan shilling eases as banks cover dollar positions

Fri Apr 25, 2014 7:52am EDT

By Elias Biryabarema
    KAMPALA, April 25 (Reuters) - The Ugandan shilling 
fell slightly on Friday as commercial banks snapped up dollars
to cover short positions, traders said.
    End-of-month dollar inflows from coffee sales and any
further mopping up of shilling liquidity by the central bank
look set to offer the local currency support in coming sessions,
some market players said.
    By 1105 GMT commercial banks quoted the currency of east
Africa's No. 3 economy at 2,510/2,520 to the dollar, weaker than
Thursday's close of 2,505/2,515.
    "Short position covering by some banks put the shilling
under pressure," Crane Bank trader Shahzad Kamaluddin said. 
    "We're likely to get the usual end-of month-inflows
especially from exporters of commodities like coffee. These will
push the shilling back up," he said.
    Traders said the central bank had again drained liquidity
from the money market on Friday, though it was not immediately
clear how much had been taken out. 
    Next week the Bank of Uganda will auction Treasury bills of
all maturities worth 120 billion shillings ($47.81 million),
less than in the past few weeks.
    "I am not anticipating a lot of offshore funds from this
debt auction and I see a depreciation risk there," Diamond Trust
Bank trader David Bagambe said.

   UGX Spot Rate..... UGX= 
   Ugandan Shilling Money Guide.... UGX/1 
   Calculated Cross Rates.......... UGXX= 
   Deposits..................... UGXDEPO= 
   Deposits & Forwards............. UGXF= 
   Uganda Equities Guide....... UG/EQUITY 
   Uganda All Share Index........ .ALSIUG 
   Shilling background ..... UGX/BKGDINFO 
   Ugandan Debt Guide............ UG/DEBT 
   All Uganda Bonds............. 0#UGTSY= 
   Uganda T-Bills.............. 0#UGTSYS= 
   Uganda Benchmark............. 0#UGBMK= 
   Central Bank ................ BOUGINDEX 
   Ugandan Contributor Index.... UG/CONT1 
   Uganda Coffee Prices....... COFFEE/UG01
 ($1 = 2510.0000 Ugandan shillings)

 (Editing by Richard Lough and Louise Ireland)
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