Uganda shilling gains vs dlr; new c.bank policy seen delayed

KAMPALA, July 4 (Reuters) - The Ugandan shilling
continued to claw back ground against the dollar on Monday
after record lows prompted the central bank to sell dollars in
the market last week.

Traders said the delayed introduction of a central bank
interest rate -- which had been expected on Monday -- had not
affected the shilling, adding that it was unclear when the rate
would take effect.

At 0915 GMT commercial banks in capital Kampala quoted the
currency at 2,490/2,530 to the dollar, stronger than Friday's
close 2,520/2,560.

"Demand for the dollar has eased off, and the intervention
of the central bank last week has had an impact," said Faisal
Bukenya, head of market making at Barclay's Bank Uganda.

The shilling slipped to a low of 2,710 against the dollar
last week on strong dollar demand from the oil sector,
speculative trading and panic buying.

A Barclay's Bank Uganda note to clients on Monday estimated
the central bank had sold $10 million to $20 million on Friday
to prop up the local currency.

"Outlook is for a stronger dollar in the long run but a
stronger shilling in the short run in a very soft market,"
Barclay's said.

Traders saw the shilling trading in a 2,480/2,540 range on
Monday.

Uganda has said it will shift monetary policy to target
inflation rather than the money supply and introduce a central
bank interest rate to stabilise interbank rates.

Previously, the bank had watched the amount of money in
circulation in line with the level of economic activity instead
of focusing on price stability.

UGX Spot Rate.....UGX=

Ugandan Shilling Money Guide....

Calculated Cross Rates..........UGXX=

Deposits......UGXDEPO=

Deposits & Forwards.............UGXF=

Uganda Equities Guide.......

Uganda All Share Index.........ALSIUG

Shilling background .....

Ugandan Debt Guide............

All Uganda Bonds.............<0#UGTSY=>

Uganda T-Bills..............<0#UGTSYS=>

Uganda Benchmark.............<0#UGBMK=>

Central Bank BOUGINDEX

Ugandan Contributor Index....

Uganda Coffee Prices......
(Reporting by Barry Malone; Editing by Hugh Lawson)

(For more Reuters Africa coverage and to have your say on the
top issues, visit: af.reuters.com)