KAMPALA: The Ugandan shilling was little changed on Tuesday though traders were betting on a stronger local currency in the short term, buoyed by inflows from end-of-year spending by non-governmental organisations (NGOs).
At 0946 GMT commercial banks quoted the shilling at 2,745/2,755, a touch stronger than Monday's close of 2,748/2,758.
"NGOs close the year early so we expect significant conversions from them in the coming days," said Isaac Iga, chief dealer at Orient Bank. "Those inflows, added to remittances from emigrant workers, should outweigh any demand."
Local NGOs typically receive donations in hard currency and Isaac said they would be doing conversions to pay salaries for November and December and meet any outstanding operational expenses for the year.
The local currency is down 8.2 percent against the greenback so far this year.
Traders say the local currency is likely to oscillate in the 2,720-2,750 range ahead of the release of November inflation data, which trader's hope will offer clues to the central bank's likely next policy move.
A market note from Mantis, Amsterdam-based frontier markets research firm, said in the long-term the shilling "will continue depreciating at an elevated pace before the general elections in 2016".
The note said the depreciation risk stemmed from uncertainty surrounding the pre-election period and the east African country's current account and fiscal deficits.
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