KAMPALA: The Ugandan shilling edged lower on Wednesday as manufacturing firms bought dollars, but hard currency inflows from non-governmental organisations (NGOs) was cushioning the local currency.
At 0903 GMT commercial banks quoted the shilling at 2,625/2,635, weaker than Tuesday's close of 2,620/2,630.
"Some little demand is coming in from manufacturing firms and it's pushing the shilling (weaker)," said Isaac Iga, chief dealer at Orient Bank.
"I think the shilling would have lost more value but a lot of the demand is being absorbed by inflows from NGOs," he said.
Ali Abbas, trader at Crane Bank said some commercial banks were also stocking up on greenbacks to cover short positions, piling more pressure on the shilling.
The Ugandan shilling is down nearly 4 percent against the greenback so far this year.
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