KAMPALA: The Ugandan shilling clawed back some of its recent losses on Friday after some commercial banks unwound long dollar positions and companies converted hard currency to pay taxes.
At 1108 GMT commercial banks quoted the shilling at 2,765/2,775, stronger than Thursday's close of 2,775/2,785.
"Some banks are cutting back their long dollar positions," said Isaac Iga, chief dealer at Orient Bank.
Companies were also selling dollars to pay taxes, he said.
The shilling weakened sharply this week, prompting the central bank to sell an undisclosed amount of greenbacks on Wednesday to meet demand for dollars.
Iga said the local currency, which is down 8.8 percent against the greenback so far this year, is still vulnerable to weakening on the back of anticipated dollar demand.
A trader from a leading commercial bank said a Treasury bill auction due next week was likely draw in some inflows. The central bank or Bank of Uganda will be selling a total of 165 billion shillings ($59.61 million) worth of Treasury bills.
Comments
Comments are closed.