Currency market update from Wednesday’s session

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KAMPALA - The Uganda shilling was marginally stronger on Wednesday after remittance inflows offered support, traders said.

The shilling closed the day trading at 3813 / 3823 levels stronger than the day’s opening at 3825/3835 levels.

Money markets were tight today with short-term funding averaging around 12.05% according to Absa traders.  

Meanwhile, yields on today’s well-subscribed primary treasury bond auction edged higher compared to the last auction held in January 2024.

The benchmark 2-year and 10-year bonds cleared at 13.750% and 16.000% reflecting an upward shift of 55 basis points (bps) and 50bps respectively.

Bank of Uganda accepted slightly more than sh720b against the auction offer amount of sh520b.