KAMPALA: The Ugandan shilling gained ground against the dollar on Wednesday, boosted by hard currency inflows from offshore investors seeking to buy Uganda's high-yielding debt.
At 1004 GMT commercial banks quoted the shilling at 3,305/3,315, stronger than Tuesday's close of 3,315/3,325.
"We saw a bit of inflows from offshore people who participated in today's auction," said Ahmed Kalule, trader at Bank of Africa.
Bank of Uganda (BoU), the central bank, was later on Wednesday due to release results of a Treasury bill sale where a total of 175 billion shillings ($53 million) worth of debt was on offer. Although rates on Ugandan debt have started to slow at recent auctions, they were soaring for much of this year and traders say they still remain at very attractive levels.
Kalule said the shilling, down about 16 percent against the dollar this year, was also boosted by a slump in greenback appetite.
"Some of the companies are starting to shut down or slowdown activity for holidays so we're seeing corporate demand receding."
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