9 July 2012

Uganda: Shilling Stable Despite U.S. Bank Holiday

Kampala — Despite the US independence holiday on July 4, where all commercial banks closed shop to mark 227 years of independence, the Uganda Shilling remained relatively stable against the United States dollar in the week.

It was feared that the banks' day off and the announcement of the new central bank rate for July could send shocking waves in the market hence an upward oscillation of the Ugandan currency.

However, the Uganda Shilling by noon on Friday was trading at Ush2465 and Ush2485 against one United States dollar, which was generally the general trading by the start of the week.

"There has been no significant oscillation as a result of the US holiday or our new CBR rate," said Mr. Jan Tibamwenda, the Bank of Uganda communications director.

He added that the slightly weakening or loosening is expected in any financial market economy.

"The situation is under control," stressed Tibamwenda.

A trader working with Prime Forex Bureau had earlier informed East African Business Week that despite the United States independence holiday and the expected low supply due to the holiday, the shilling was relatively stable against the dollar.

The Ugandan shilling on Monday last week traded flat against the dollar in thin volumes as investors awaited the announcement of the central bank rate decision for direction.

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