A trader counts money in Ugandan Shillings. Despite Bank of Uganda
intervention into the market, the Shilling has continued to depreciate
against the greenback. FILE PHOTO
Uganda’s central bank sold dollars to shore
up the slumping local currency, which strengthened for.................................
the first day this week.
“We have intervened in the foreign-exchange market,” Stephen Mulema, director of financial markets at the Kampala-based Bank of Uganda, said by phone. He declined to say how much was sold.
The currency of Africa’s biggest coffee exporter fell to the lowest level since at least June 1993 Wednesday. It gained 0.6 percent to 2,886 per dollar by 2:09 p.m. in Kampala, paring its 2015 retreat to 3.8 percent.
Ugandan investors sought dollars, sending the shilling lower, to support economic growth forecast at 6.3 percent this year from 5.9 percent in 2014, according to the International Monetary Fund. The central bank said on Jan. 8 it would take measures to halt the currency’s slide it blamed on “speculative tendencies.”
Yields on the country’s 91-day Treasury bills rose 79 basis points to 11.9 percent at an auction this week, the highest since September 2012, according to data compiled by Bloomberg. The central bank’s dollar intervention was first reported by Reuters, which said it was the fifth sale this month.
To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net
To contact the editors responsible for this story: Alastair Reed at areed12@bloomberg.net Emily Bowers, Chris Kirkham
the first day this week.
“We have intervened in the foreign-exchange market,” Stephen Mulema, director of financial markets at the Kampala-based Bank of Uganda, said by phone. He declined to say how much was sold.
The currency of Africa’s biggest coffee exporter fell to the lowest level since at least June 1993 Wednesday. It gained 0.6 percent to 2,886 per dollar by 2:09 p.m. in Kampala, paring its 2015 retreat to 3.8 percent.
Ugandan investors sought dollars, sending the shilling lower, to support economic growth forecast at 6.3 percent this year from 5.9 percent in 2014, according to the International Monetary Fund. The central bank said on Jan. 8 it would take measures to halt the currency’s slide it blamed on “speculative tendencies.”
Yields on the country’s 91-day Treasury bills rose 79 basis points to 11.9 percent at an auction this week, the highest since September 2012, according to data compiled by Bloomberg. The central bank’s dollar intervention was first reported by Reuters, which said it was the fifth sale this month.
To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net
To contact the editors responsible for this story: Alastair Reed at areed12@bloomberg.net Emily Bowers, Chris Kirkham
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