Business
Interbank, corporate dollar demand persists
“The scarcity of shilling liquidity continues to support high interbank borrowing costs, highlighting ongoing funding pressures given the hawkish stance of the central bank,” Absa said.
Interbank, corporate dollar demand persists
By: Ali Twaha, Journalist @New Vision
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The Uganda shilling came under depreciation pressure in Thursday’s trading session, weakening from opening levels of 4100 / 4110 to close at 4140 / 4150 against the dollar.
Traders said the move was largely driven by strong interbank and corporate demand for the greenback, while dollar inflows remained limited, leaving the market structurally short of hard currency, which saw the pair steadily edge higher throughout the day amid persistent demand-side pressure.
In the money markets, liquidity conditions remained tight according to analysts from Absa, with funding rates staying elevated within the 14.25%-14.75% range.
“The scarcity of shilling liquidity continues to support high interbank borrowing costs, highlighting ongoing funding pressures given the hawkish stance of the central bank,” Absa said.
In the debt market, the Bank of Uganda will conduct a treasury bill auction next week, where a total of sh350b will be offered.
“The scarcity of shilling liquidity continues to support high interbank borrowing costs, highlighting ongoing funding pressures given the hawkish stance of the central bank,” Absa said.
In the debt market, the Bank of Uganda will conduct a treasury bill auction next week, where a total of sh350b will be offered.