(Kampala) – The Uganda shilling weakened on Monday as corporate demand increased, particularly from the energy sector, following the completion of tax obligations.
On Monday, the Uganda shilling opened at 3667/3677 against the dollar, with market expectations leaning towards a weaker performance due to increased demand. Traders noted that the demand came predominantly from the energy sector, which contributed to the local unit losing value throughout the day.
“We did not see much in terms of dollar inflows,” said Rahmah Masagazi, a market analyst, indicating that the local currency struggled to stabilize as the demand was met.
By the close of the day’s session, the Uganda shilling was trading at 3674/3684, reflecting a noticeable depreciation.
Additionally, money markets remained tight, with overnight liquidity rates standing at 11.50%, according to data from Absa market sources.
| Currency Trading Details | Opening Rate | Closing Rate |
|---|---|---|
| Uganda Shilling (UGX) to USD | 3667/3677 | 3674/3684 |
| Money Market Liquidity | Tight | Tight |
| Overnight Rates | 11.50% | 11.50% |
