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Uganda shillings hits new low, breaches 3,800 mark

The Uganda shilling continues its upwards spiral even breaching the 3,800 mark. The shilling against the dollar is trading in the range of 3,804/3,824 on the buy and sell sides, creating a new depreciation low for the local currency.

As at June 7, almost all forex bureaus in downtown Kampala were quoting the shilling-dollar exchange rate at over 3,800. This is a new low considering that for the last month it had not breached the Shs 3,800 ceiling.

According to financial market analyst Stephen Kaboyo of Alpha Capital Partners, drivers for the strong dollar include demands by corporations that are reporting their financials.

The Shs 3,800 mark implies increase in cost of imported essentials like fuel which would in turn push up the cost of transportation and productive activities.

Another reason for the depreciating shilling, according to financial experts is rising sentiments ahead of the reading of the 2018/19 national budget.

The upcoming budget stresses revenue mobilisation, by introducing new taxes like on mobile money transactions and use of social media.

Comments

+7 #1 Wazza 2018-06-08 11:51
What a contradiction! Just less than 48 hours after the self styled emperor tells the nation that the economy is growing, the shilling continues to fall..an indicator of a failing economy.
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+3 #2 gatashimana 2018-06-08 14:35
Quoting Wazza:
What a contradiction! Just less than 48 hours after the self styled emperor tells the nation that the economy is growing, the shilling continues to fall..an indicator of a failing economy.


I don't think what we have can be called an economy since the majority of us have no financial impact.

This "economy" is for the few who can afford to fly to India or Europe for treatment, the few who can own houses in South Africa and USA.

Uganda isn't a country but a big corporation for them to make money for just them at our expense.
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0 #3 Akot 2018-06-08 19:07
Museveni should have his photo printed on Uganda bank notes & coins, after all the country is his family business & soon it will be his property constitutionally!

Then, the oil, gold, copper, Amuru farm land...will belong to the demon who will have foreign companies to help him handle the family business!
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+2 #4 Fuller 2018-06-08 21:05
Candles begin to light the darkness?

Many a heartless leader were vanquished after economy went bust. Who knows...
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