Uganda Shilling Projections [April 4 to April 8, 2022]: Alpha Capitals’ STEPHEN KABOYO:

Bid and ask held at 3,585/95.

By Stephen Kaboyo

The Uganda shilling traded firmer, propped up by end month flows that improved supply levels amid subdued demand. Bid and ask held at 3,585/95.

In fixed income space, yields turned out flat in a hugely oversubscribed auction. Liquidity levels in the banking system remained high and kept a lid on the rates. Yields printed at 6.662%, 8.298% and 9.591% respectively.

In the regional markets the Kenya shilling was on the edge, with markets expecting a weakening bias on anticipated demand from energy sector.

Trading was in the range of 114.85/115.05. Meanwhile, central bank of Kenya held its benchmark lending rate at 7% reflecting a similar trend of most Central Banks in the region.

Ambassador Stephen Kaboyo Managing Director, Alpha Capital Partners, firm focusing on sovereign asset management, foreign exchange trading & financial markets. He is also Board Chair Uganda Telecom Ltd and Uganda’s Czech Ambassador.

Globally, all major currencies dipped against the dollar, pulled lower by a general drop in riskier currencies on renewed worries and uncertainty over the Ukraine war.

While in the energy markets, oil prices plunged to trade at $102 per barrel, on news that the US was considering the release of up to18 million barrels from its strategic petroleum reserves, the largest release in nearly 50 years.

In coming days, the domestic markets are going to be squarely focused on the outturn of the macroeconomic picture of Q4 of the fiscal year and exogenous factors, specifically the oil prices that are likely to contribute to surging supply side inflation.

The writer is the Managing Director/CEO of Alpha Capital Partners

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