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Ugandan Shilling weakens as preparations for monetary policy meeting

The shilling weakened marginally from opening levels of 3660/3670 to close the day at 3665/3675 as some corporate demand filtered through in an overall quiet day of trading.

Money markets were still relatively tight today with overnight at an average of 7.15%. Bank of Uganda will hold a sh245bn treasury bill auction on Wednesday.

Meanwhile, the Bank of Uganda next monetary policy committee (MPC) is scheduled for February 15, 2021, which will determine the next course of interest rates in the market.

However, players in the financial sector project that the benchmark lending rate is unlikely to change.

BoU has held its policy rate at 7% since June 2020 as the economy gradually gains traction in line with projection of economic growth of above 3% this fiscal year.lling

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