Treasury & Forex

Treasury & Forex

Treasury products

Treasury bills – structured in three maturities of less than one year and currently 91 days, 182 days, and 364 days. Treasury bills are referred to as short-term instruments (securities) and are issued at a discount.

Treasury bonds – these are long-term securities issued in tenors over a year, presently 2,3,5,10 and 15 years.

1 (a): WHO CAN INVEST IN GOVERNMENT SECURITIES
  • Commercial banks
  • Insurance companies
  • Individual companies
  • Government agencies
  • Pension funds
  • Individuals (of at least 18 years of age)
  • Offshore investors (individual persons and corporate entities) – through a local agent i.e Primary Dealer Bank
(b): ADVANTAGES OF INVESTING IN UGANDA GOVERNMENT SECURITIES
  • They offer a competitive rate of return.
  • They have the full faith and credit of the Government of Uganda
  • Government securities are a saving mechanism
  • They are liquid; can easily be sold in the secondary market
  • They can be pledged as collateral for borrowing.
(c): INVESTMENT PROCEDURES

All investors wishing to participate in the treasury bill/bond transactions must have an account with a commercial bank and be registered on the CSD (Central Securities Depository System). An investor registers by filling out a CSD account opening form (available on the BOU website and at commercial banks). These forms must be routed through the client’s commercial bank for endorsement before the CSD account is opened.
Only registered participants are eligible to participate in auctions. There are two categories of bidders during auctions:-

  1. Competitive bidders – investors whose bids are above an amount prescribed by BOU, currently 200 million shillings.
  2. Non-competitive bidders – investors whose bids range from 100,000 to 200 million shillings.

Investors can submit non-competitive bids to BOU through a commercial bank but only Primary Dealer Market Makers (PDMMs) will be able to submit comptetitive bids in the primary auction. Investors can purchase Treasury bills or bonds from the secondary market. In the primary market, banks will submit all bids electronically to BOU which will carry out the auction. The auction will be opened at least 3 days prior to and closes at 10am on the auction day.

All bids are captured on the CSD and comprehensive and thorough verification is done, before results are approved. Diarisation is done on the RTGS for the next day’s automatic settlement at 12 o’clock.

Foreign Exchange

We buy and sell foreign donominated cash currency and also telegraphic transfers known as money remittances for importers and exporters as well as personal transfers for the following currencies:

  • US dollar
  • Sterling pound
  • Euro
  • Kenyan Shilling
  • Tanzania Shilling
  • South Africa rand
  • Indian Rupees

The following can be availed through our branches namely Colline House, Luwum Street, Kikuubo and Arua park.
Our Treasury department can be reached on the below details for competitive rates:
Telephone: +256 200516608
Email: treasury@abccapitalbank.co.ug