Business

Shilling to remain stable against dollar, experts say

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By  Dorothy Nakaweesi

Posted  Friday, December 20   2013 at  02:00

In Summary

Uganda is projected to grow by 6.2 per cent from mineral development.

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Kampala- Earlier this week, the Uganda Shilling appreciated against the United States dollar to trade below 2500.

The local currency is expected to stay stable on the back of reduced corporate transactions and sizeable inflows in the form of capital injections.

By close of business yesterday, the Shilling was trading between 2,480/2,500 stronger than end of last week when it closed at 2,500/2,505 and 2,522/2,527 a week before.

This means exporters have less money in their pocket while importers are making more orders because they have more cash on them.

Standard Chartered Bank’s head of corporate affairs Herbert Zake said: “We expect the Shilling to hold as major businesses slow down ahead of the festive season.”

“We still maintain our view of a strong shilling in the coming weeks in (between 2,490and 2,500) and low-key activity as businesses close down ahead of the holiday period,” Mr Zake added.

However, some analysts say, after the festive season, the Shilling will lose some ground.

Barclays Bank’s head of Money Making Faizal Bukenya said: “Usually during the festive season the local unit does appreciate but this will not be for long. We shall see it lose some ground in the first and second week of January”.

dnakaweesi@ug.nationmedia.com