Ugandan shilling firms, Treasury bond inflows help

KAMPALA: The Ugandan shilling was slightly stronger on Friday, helped by inflows from offshore investors buying Ugandan Treasury bonds.

At 0958 GMT commercial banks quoted the shilling at 3,340/3,350, stronger than Thursday's close of 3,350/3,360.

"Inflows were mainly from offshore investors targeting the Treasury bond auction," said Stephen Kaboyo, managing director at Alpha Capital Partners, referring to this week's auction where 190 billion shillings ($56.72 million)worth of debt was on offer.

Kaboyo said the shilling was seen strengthening due to subdued dollar demand although other traders said excessive liquidity in the money markets could limit its gains.