KAMPALA: The Ugandan shilling remained stable on Tuesday with traders anticipating little change ahead of a Treasury auction this week, which the country hopes will draw healthy inflows from foreign investors.
At 1025 GMT commercial banks quoted the shilling at 2,600/2,610, unchanged from Monday's close.
"I don't think we'll see a lot of activity in terms of taking positions before auction results come through," said Shahzad Kamaluddin, a trader at Crane Bank.
"The shilling will probably keep this stability although if we get strong inflows it might strengthen to 2,590 levels," he said.
A total of 180 billion Ugandan shillings worth of Treasury bonds of re-opened two-year and new fifteen-year tenors are up for auction by the central bank this week.
Traders expect good appetite from offshore investors drawn by attractive yields especially for the two-year notes.
At their last sale on August 13, the two year bonds fetched a weighted average yield of 13.1 percent, slightly up from 12.9 percent realised at preceding auction.
The Ugandan shilling is down 3.1 percent against the greenback this year and some traders say a looming surge in shipments of goods for the December shopping season could put some pressure on the local currency.
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