Ugandan Shilling Shows Slight Strength Against U.S. Dollar Amid Tax Payments

The Ugandan shilling strengthened slightly on Wednesday due to lower foreign currency demand amid tax preparations. Commercial banks reported a rate of 3,662/3,672 to the U.S. dollar, up from 3,665/3,675 the previous day.

On Wednesday, the Ugandan shilling exhibited slight appreciation against the U.S. dollar, primarily due to decreased demand for foreign currency. This trend is attributed to local businesses gearing up for tax payments scheduled for mid-month. According to traders, the commercial banks reported the shilling’s value at 3,662/3,672 to the dollar, in comparison to the previous day’s valuation of 3,665/3,675.

The Ugandan shilling’s marginal strengthening against the U.S. dollar reflects reduced foreign currency demand as companies prepare for impending tax obligations. This trend demonstrates how fiscal responsibilities influence currency valuations in Uganda’s economy.

Original Source: www.tradingview.com