KAMPALA: The Ugandan shilling was little changed on Friday and players said it would likely trade in a stable range next week, underpinned by corporate tax payments.
At 1132GMT commercial banks quoted the currency of east Africa's third-largest economy at 2,518/2,523, barely changed from Thursday's close of 2,517/2,522.
"I see the shilling possibly swinging in the 2,515-2,525 range next week," said Benon Okwenje, trader at Stanbic Bank, adding that because corporates would be reserving most of their shilling holdings for tax payments, they will have little local currency to use for dollar purchases.
Traders say the shilling is likely to suffer in the coming months from the impact of the war in South Sudan which has cut off one of Uganda's most lucrative export markets and reduced the flow of dollars into the country.
For the next few weeks, Stephen Kaboyo of Alpha Capital Partners said low yields on government debt could undermine confidence in the local currency.
"On the other hand the decline in yields in the government securities especially in longer tenors is likely to discourage offshore interest the undercurrent indicates a bearish shilling in weeks to come."
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