Ugandan shilling unchanged, tax payments keep dollar demand low

KAMPALA: The Ugandan shilling was unchanged on Monday and was seen maintaining stability as most companies concentrate on paying their taxes and stay away from the foreign exchange market.

At 1107 GMT, commercial banks quoted the shilling at 3,355/3,365, unchanged from Friday's close.

"Mid-month tax payments which need to be settled will keep most corporates away from the (foreign exchange) market which I think will maintain the shilling in a stable range," said Shahzadd Kamaluddin, trader at Crane Bank.

A market report from Alpha Capital Partners said there was also likely to be some hard currency inflows from "portfolio investors looking to invest in Ugandan government securities," that could offer support to the shilling.