Ugandan shilling stable, liquidity scarcity offers support

KAMPALA: The Ugandan shilling was stable on Wednesday, as last week's payments of mid-month tax obligations helped dry up supply of the local currency, leading to subdued demand for the greenback.

At 0955 GMT, commercial banks quoted the shilling at 3,470/3,480, unchanged from Tuesday's close.

"After last week's (mid-month) tax payments, there's a shortage of shillings," said Shahzad Kamaluddin, a trader at Crane bank.

Kamaluddin said the scarcity of shillings was limiting appetite for dollars from commercial banks and corporate firms and keeping the local currency on an even keel.