The Ugandan shilling slipped on Tuesday, with demand for dollars from offshore banks, manufacturers and oil firms outweighing the central bank’s mop up of shilling liquidity.
At 0940 GMT, commercial banks quoted the shilling at 3,440/3,450, slightly weaker than Monday’s close of 3,430/3,440.
“Appetite is starting to pick up. We’ve received demand (for dollars) from offshore banks and also from local manufacturing and energy clients,” said Faisal Bukenya, head of market making at Barclays Bank.
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Bank of Uganda (BoU), the central bank, mopped up Shs118 billion ($34.30 million) worth of excess liquidity on Tuesday, via a seven-day repo.