{UAH} OUR "MONOPOLY" CURRENCY LOSING VALUE BIG TIME

Uganda shilling weakens further against US Dollar

Posted by: APA Posted date : September 7, 2015 at 7:20 pm UTC 42 views In : Business

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The Ugandan Shilling has further weakened, sending shock-waves that it will begin the descent to the 4,000 mark against the US Dollar.By close of business Monday, commercial banks quoted the shilling at 3,680 to the US dollar.

Stephen Kaboyo of Alpha Capital Partners says a combination of strong corporate demand, the global strength of the dollar and political sentiments in the run up to next year's elections have kept the shilling weak.

The shilling has so far lost 24.6 percent of its value against the dollar, making it the most weakened currency in the region.

Kaboyo, in his weekly commentary, said the shilling faces a lot of uncertainty in the near future with a likelihood of further weakening.

According to Kaboyo, investors in the government securities market continue to demand high premiums and are more focused on the short end of the curve.

Al-Amin Andama, a forex dealer, says the demand for the dollar is so high that most dealers are finding it hard to trade.

Uganda is a net import country, meaning it needs lots of dollars to import most needed goods.

The Bank of Uganda estimates that the country's trade deficit is at $2.8 billion, equivalent to nearly half of the national budget

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Gwokto La'Kitgum

"Even a small dog can piss on a tall Building", Jim Hightower

"But this I know, UPC believed and still believes in

very high education. We can call Obote all bad names we have, but the bottom line remains that he got more scholarships for Buganda than all previous Uganda leaders combined. That includes Sir Edward Mutesa, President Lule, President Binayisa, up to and into Ssabasajja Mutebi. Who all happen to be Baganda leaders." Mulindwa

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