Ugandan shilling stable, demand from energy importers eyed

The Ugandan shilling was little changed on Wednesday and traders said demand for dollars by energy importers could determine the direction of the currency in the next few days.
At 0923 GMT, commercial banks quoted the shilling at 3,385/3,395, barely changed from Tuesday’s close of 3,380/3,390.

“There’s (dollar) demand from energy sector firms although they are buying in small quantities,” said Faisal Bukenya, head of market making at Barclays Bank.

Bukenya said there was also some buying pressure from the central bank for its reserves build-up, which, combined with demand from the energy firms, will likely keep the shilling inclined toward depreciation.