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Uganda: BOU Announces Changes in Sale of Govt Securities

23.05.2018

 | Source:  The Independent; All Africa

Players in the government securities market are set to deal with the new rules effective July 2, 2018.

According to the press release issued by the communications department of Bank of Uganda dated May 21, the method of pricing treasury bills and bonds in the primary auctions will change to one of a single price from the current multiple prices with effect from July 2, 2018.

According to the release, in the single price method, the respective securities in the primary auction will be sold at the same price to competitive and non-competitive bidders.

Competitive bidders are the investors with bid amounts that are above Shs200million, while non-competitive bidders are the investors with bid amounts that are between Shs100, 000 and Shs200million.

"The single price with respect to each specific security will be the highest interest rate from the accepted bids in the auction," the release reads in part.

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