Uganda Shilling Steadies After Central Bank Intervention
The Bank of Uganda sold dollars on the interbank market to curb a slide that had pushed the shilling to its weakest level in over a year.
The Ugandan shilling steadied against the US dollar on Thursday after the Bank of Uganda intervened in the interbank foreign exchange market, dealers said, halting a slide that had pushed the currency to its weakest level in more than a year.
A central bank spokesperson confirmed the intervention but declined to disclose the volume of dollars sold. "Our objective is orderly market conditions, not defending a particular exchange rate," the spokesperson said.
Analysts attributed the earlier pressure on the shilling to seasonal dollar demand from importers and businesses settling end-of-quarter obligations, combined with reduced inflows from coffee exports during the off-season.
The shilling has weakened by roughly 4 percent against the dollar so far this year, broadly in line with other regional currencies.
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