Currency update from Wednesday’s session

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The Uganda shilling traded within the same narrow range on Wednesday due to subdued activity across the manufacturing and telecom sectors, traders said.

The shilling is expected to trade within the 3570-3630 range in the near term. Money markets were less liquid, partly due to the mid-month taxes settled yesterday, with overnight and one-week trades averaging at 10.07% and 9.92%, respectively, according to Absa data.

In the debt market, secondary securities activity was muted as market participants appeared to wait for the treasury bill auction results. The Bank of Uganda sold a total of sh705.7 billion in face value, representing a 199% allocation in an auction that printed at 15.254%, the cutoff level in the previous sale of the 364-Day bills.

The 91-Day bill remained unchanged at 12.00%, while the 182-Day bills sold at 13.551% in today’s auction, compared to 12.500% in the previous auction.