Shilling unchanged ahead of Christmas holiday

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The Uganda shilling traded in a narrow range on Wednesday, closing the session at 3605/3615 ahead of the Christmas holiday.

The currency pair opened on Wednesday at 3607/3617 levels. Traders said overall trading was minimal during the session despite pockets of dollar-selling interest from commercial banks and commodity.

“Demand for the hard currency was indeed subdued as most corporates appeared closed for the festive season, which supported the local unit; however, the appreciation remained limited amid the shilling’s bearish sentiment backdrop ahead of Uganda’s general elections on January 15, 2026,” Richard Nsubuga, a market analyst, said.

The shilling is still expected to trade within the range of 3575 – 3625 in the near term. Money markets remained tight according to Absa market report, with interbank overnight and one-week rates averaging 10.27% and 10.47%, respectively.