Shilling trades stable in Monday's session

The Uganda shilling remained stable against the dollar in Monday's trading session, trading at 3775 / 3785 levels all day. Traders said the currency's stability was largely supported by balanced market flows, with demand for dollars from importers and corporate players being adequately matched by inflows from exporters, remittances, and other market participants. In the money markets, liquidity conditions continued to remain ample on the back of maturities, according to an Absa report, with overnight and one-week lending rates averaging 9.70% and 9.95%, respectively. The Central Bank was active in the market, mopping up excess liquidity through its Open Market Operations. In the debt market, the Bank of Uganda will conduct a Treasury Bond auction worth sh990b on September 9, where the new benchmark 3-year and 20-year bonds will be issued . The benchmark 10-year bond will be reopened.