Ugandan shilling weakens after a central bank liquidity injection

KAMPALA: The Ugandan shilling weakened on Tuesday, hurt by an injection of liquidity into the interbank market by the central bank.

At 0918 GMT commercial banks quoted the shilling at 3,470/3,480, weaker than Monday's close of 3,465/3,475.

"Banks are taking positions after an injection of liquidity by the central bank," said Ahmed Kalule, trader at Bank of Africa, referring to the central bank's Tuesday injection of 166 billion shillings ($47.84 million) via a seven-day reverse repo.

Kalule said the shilling's weakening was likely to be short-lived amidst expectations of inflows from offshore investors looking to take part in a Treasury bill auction due on Wednesday.