Ugandan Shilling Gains Slight Firmness Amid Tax Payment Preparations

The Ugandan shilling has shown slight firmness due to reduced demand for foreign currency related to tax payments. The exchange rate stood at 3,662/3,672 against the U.S. dollar on Wednesday, an improvement from the previous day.

On Wednesday, the Ugandan shilling (USDUGX) displayed slight firmness, attributed to reduced demand for foreign currency as local businesses geared up for tax payments scheduled for the middle of the month. Traders noted this phenomenon as a key factor influencing the currency’s performance. As a result, commercial banks reported the exchange rate at 3,662/3,672 against the U.S. dollar, showing improvement from Tuesday’s closing rate of 3,665/3,675.

In summary, the Ugandan shilling’s minor strengthening results from local firms’ preparations for tax payments, which have led to diminished foreign currency demand. The adjustment in exchange rates reflects this development and indicates a stable market behavior in response to tax obligations.

Original Source: www.tradingview.com