Ugandan shilling strengthens as tax payments trim dollar demand

KAMPALA: The Ugandan shilling firmed on Monday, helped by weakening dollar demand from corporate clients who used some of their local currency holdings to settle mid month tax bills.

At 0912 GMT commercial banks quoted the shilling at 3,465/3,475, from Friday's close of 3,475/3,485.

"Demand for dollars has dropped significantly from corporate clients and commercial banks," said Faisal Bukenya, head of market making at Barclays Bank.

Another trader from a leading commercial bank said most clients had used a chunk of their shillings to pay mid month taxes, which explained their absence from the foreign exchange market.