KAMPALA: The Ugandan shilling edged up on Friday on the back of banks selling dollars and market participants said it could rise further next week due to inflows from charity groups.
At 0952 GMT, commercial banks quoted the shilling at 2,623/2,633, slightly up from Thursday's close of 2,627/2,637. "In the interbank we've seen some significant (dollar)selling which has strengthened the shilling," said Benon Okwenje, trader at Stanbic Bank.
"I am expecting strong inflows as we approach the end of month so the shilling should trade marginally stronger next week," he said, citing dollar inflows from non-governmental organisations operating in the country.
The shilling is down 3.9 percent against the greenback in the year to date, under pressure from a range of factors, including aid stoppages by donor nations who were angered by the enactment of an anti-gay law earlier in the year. Daniel Muganza, trader at Centenary Bank, said the shilling could benefit from tighter liquidity in the markets after the central bank mopped up excess liquidity on Friday.
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