Tuesday 9th of February 2016 07:30:09 AM

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Uganda shilling expected to hold

By Julius Businge

This week the Uganda shilling is expected to remain strong as Bank of Uganda expects to sell Shs 95 billion worth of Treasury bills.

Analysts say with heavy offshore participation expected there could be further support for the local unit.

Last week the shilling remained strong with little change against the dollar because the market was characterised by lethargic trading and thin trading volumes in the Interbank Forex markets. The unit traded within narrow 2305-2330 ranges during the week and closed a tad weaker at 2313/23, as compared to last Friday’s close of 2305/15, according to Dickson Magecha, a forex trader.

Magecha said demand emanating mostly from the energy, manufacturing and telecom sectors kept the unit under pressure for most of the sessions with support provided by the relatively high interest rates in the Money Markets.

He expects trading to maintain a neutral stance at the current levels and expect to trade range-bound in the 2,300-2,340 levels in the near term.

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