KAMPALA, Uganda (UGNEWSLINE) – On Wednesday 14th October, The Uganda shilling posted significant gains against the US dollar, appreciating from 4120 / 4130 to close at 3960 / 3970, representing a recovery of approximately 3.8%.
The rally was driven by the Bank of Uganda’s decision to raise the Central Bank Rate (CBR) by 225 basis points from 9.75% to 12.00%. In addition, the Central Bank actively intervened in the foreign exchange market through dollar sales, boosting dollar liquidity and providing strong support to the local currency.
In the money markets, liquidity conditions tightened further following the Bank of Uganda’s rate hike, as market participants adjusted to the new interest rate environment. Funding conditions became more constrained, with overnight funding rates averaging 11% during the session.
