Bank of Uganda (BOU) has announced the appointment of United Bank of Africa (UBA) as a Primary Dealer bank.
UBA’s appointment was confirmed on Thursday, by BOU Governor, Prof Emmanuel Tumusiime Mutebile.
“Bank of Uganda (BOU) hereby announces the appointment of United Bank of Africa (UBA) as a Primary Dealer bank, with effect from October 1, 2021,” Mutebile announced in a statement.
This brings the total number of Primary Dealer commercial banks appointed by the central bank to eight.
Other commercial banks previously appointed as Primary Dealer banks include; Absa, Bank of Baroda, Centenary Bank, Standard Chartered Bank, DFCU Bank, and Housing Finance Bank.
According to BOU, the role of Primary Dealer banks is to lend government money on behalf of the public and in exchange , provide treasury bills and bonds as collateral, in the primary market auction.
“The Primary Dealer banks are thereafter, expected to facilitate the buying and selling of treasury bills and bonds to investors who do not have access to the primary market. This is referred to as Secondary market” BoU explains.
“BOU is committed to making investing in treasury bills and bonds easier and more accessible while also strengthening the operations and development of the primary and secondary market for Government Securities,” Mutebile noted.
Commenting on the appointment, the UBA Uganda Managing Director /CEO Chioma A. Mang said, “This is an exciting development for UBA Uganda. We will be able to offer clients competitive rates for Government Securities and also contribute to the development of the Money Markets in Uganda. This appointment also demonstrates the confidence the Central Bank has in UBA. I encourage the public to take up this opportunity being offered through UBA, to invest in treasury bills and bonds and grow their money.”