Uganda central bank sells dollars to halt shilling slide -trader

by Reuters
Wednesday, 26 February 2014 11:47 GMT

KAMPALA, Feb 26 (Reuters) - Uganda's central bank sold dollars on Wednesday to halt a slide in the shilling triggered by fears of further aid cuts by Western donors upset over new legislation that toughens punishment for homosexuals.

"The Bank of Uganda has intervened on the selling side to try to soak up the demand," said Faisal Bukenya, head of market making at Barclays Bank in Uganda.

After weakening more than 1.8 percent, the shilling rebounded following the bank's intervention to trade at 2,490/2,500 but remained 1.3 percent down on the day.

(Reporting by Elias Biryabarema; Editing by Richard Lough; Editing by Edmund Blair)

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