Uganda shilling flat, may gain on dollar inflows

KAMPALA, June 5 (Reuters) - The Ugandan shilling UGX= is expected to gain against the dollar in the days ahead on greenback inflows from NGOs and on coffee exports, traders said on Tuesday, when the shilling traded flat against the greenback.

At 0823 GMT, commercial banks quoted the currency of east Africa's third largest economy at 2,485/2,495, unchanged from Monday's close.

"Dollar inflows still trickling in from the Coffee and NGO (non-governmental organisations) sectors. Coupled with the dollar losing some of its weight against the euro, we anticipate some further gains of the shilling," said Stanbic Bank Uganda in a market report.

Market participants are less worried about a slide in the shilling following last week's interest rate cut by the central bank disappeared after the bank vowed to act "decisively" to stem any pressures on the local currency.

Faisal Bukenya, head of market-making at Barclays Bank Uganda, said corporate dollar demand was expected to improve in the short term as interest rates drop and firms borrow and invest.

"After the rate cut, banks will lower interest rates soon and companies should start borrowing again and investing," he said.

"So while we expect the shilling to remain supported for now, in the weeks to come it's likely to come under pressure as credit flow resumes."

UGX Spot Rate..... UGX=

Ugandan Shilling Money Guide.... UGX/1

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

Deposits..................... UGXDEPO=

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

Uganda Equities Guide....... UG/EQUITY

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

Shilling background ..... UGX/BKGDINFO

Ugandan Debt Guide............ UG/DEBT

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