Uganda shilling extends gains over dollar
The Uganda shilling
continued its recent resurgence on Monday, expanding its gains against
the dollar, and traders said the unit would be strong against the U.S.
currency due to lackluster greenback demand.
Commercial banks in Kampala exchanged the shilling at 2,380/2,385 against the dollar, up from Friday’s close of 2,383/2,388.
“We have weak
demand in the market and liquidity (for the shilling) is also tight and
these are both energising the shilling,” said Faisal Bukenya, head of
market making at Barclays Bank, Uganda.
The local currency
has been resilient against the greenback since UK explorer, Tullow Oil,
announced that it had sold two thirds of its exploration properties in
Uganda.
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