The Uganda shilling rallied to its highest level in months trading below the key level of 3500 following the announcement of the Final Investment Decision by the international oil companies that is expected to bring in close to US$10 billion in investments over the coming years to kick start crude oil production.
In the fixed income, the yield curve continued to flatten with demand remaining at the highest. Yields printed at 6.501%, 8.400% and 9.800%.
In regional markets, the Kenya shilling was steady with the dollar supply matching importer demand, while Nigeria, Zambia and Tanzanian currencies faced mild pressure.
In the global markets, the dollar found some footing , passing the week’s slide as a slump in tech stocks soured appetite for riskier currencies. Elsewhere markets were on the edge awaiting Central Bank meetings in Britain and Eurozone to determine the direction of the major currencies.
Going forward, the shilling is likely to remain on upward trajectory, trading on the front foot, riding on the positive sentiment of oil sector developments as demand remains muted.
January 28 – February 4, 2022: Weekly financial markets review and outlook with Stephen Kaboyo
Stephen Kaboyo, Founder and Managing Director Alpha Capital Partners
