Domestic news - Uganda
The Uganda shilling held steady versus the greenback yesterday within the 3585-3605 band on the back of minimal but matching flows on both the demand and supply counters.
There was a slowdown in activity on the local FX market as key players stayed on the side-lines. Ahead of the weekend, we expect calmness to prevail as the USD/UGX trades higher within the 3580-3620 bracket.
In the money market, the central bank mopped up UGX 541bn of excess liquidity via a 7 day repurchase agreement. In a bid to manage structural liquidity, BOU has reestablished the 28 and 56 day deposit facility alongside repo auctions.