09/07/2014
The shilling is continuing to lose value because the market
is heavy on demand mainly from telecom firms seeking dollars to
meet dividend payments.. Currency Traders also noted that, this had prompted some investors to cover short dollar positions.
On Monday Bank of Uganda (BoU) sold an unspecified amount of
Dollars to stem a recent decline fuelled by a recovery in
importer demand, aid cuts and slowing yields on government debt.
Some western donors have cut or withheld aid over Uganda's
introduction of a tough anti-gay law. The currency is 4.5
percent weaker against the greenback in the year to date.
As the market eyes the Treasury bill auction today; another decline in yields likely to put more pressure on the shilling. Bills worth 135 billion shillings of all maturities up for sale.
