Currency update from Thursday’s session

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The Uganda shilling extended its consolidative pattern against the dollar, trading in the same narrow range on Thursday.

The unit opened and closed the session at the 3580/3588 levels, underpinned by balanced activity from buyers and sellers of the US dollar.

Traders said the shilling is still anticipated to trade within the 3570-3630 range in the near term. Money markets liquidity was tight during the day, according to Absa data with the overnight and one-week trades averaging at 10.61% and 10.62%, respectively.

In the debt market, the Central Bank settled the treasury bills with sh615.9b taken out from the market, while sh560.3b, sh557b, and sh179.8b matured and were released back into the money markets from REPOs, Treasury Bills, and the Jan 2028 bond coupon, respectively. 

Bank of Uganda also sold four Monetary Policy Instruments in the interbank market, proposed for liquidity management.