KAMPALA: The Ugandan shilling was flat in quiet trade on Wednesday, and dealers said the currency could strengthen due to mopping up of excess liquidity by the central bank.
At 1026 GMT commercial banks quoted the shilling at 2,760/2,770, unchanged from Tuesday's close.
Traders say most firms are staying out of the foreign exchange market as their commercial operations slow down towards the year-end.
"The shilling look's pretty stuck because most corporates aren't buying and banks seem happy to stay square," said Shahzad Kamaluddin, trader at Crane Bank.
"I believe there's a possibility for marginal gains since we had a repo... demand will also likely stay down."
The central Bank of Uganda (BoU) on Wednesday conducted a seven-day repo although it had not yet disclosed how much shillings it had taken out of the market.
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