Uganda Shilling Ends the Week Weaker

2505 Views Kampala, Uganda

In short
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 years elections have kept the Shilling weak.

The Ugandan Shilling ended the week weaker sending shockwaves that it will begin the descent to the 4,000 mark against the dollar. By close of business on Friday, commercial banks quoted the shilling at 3,680 to the U.S. 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 dollars, equivalent to nearly half of the national budget.

 

About the author

David Rupiny
In his own words, David Rupiny says, "I am literally a self-trained journalist with over 12 years of experience. Add the formative, student days then I can trace my journalism roots to 1988 when as a fresher in Ordinary Level I used to report for The Giraffe News at St Aloysius College Nyapea in northern Uganda.


In addition to URN for which I have worked for five years now, I have had stints at Radio Paidha, Radio Pacis, Nile FM and KFM. I have also contributed stories for The Crusader, The New Vision and The Monitor. I have also been a contributor for international news organisations like the BBC and Institute for War and Peace Reporting. I am also a local stringer for Radio Netherlands Worldwide.


I am also a media entrepreneur. I founded The West Niler newspaper and now runs Rainbow Media Corporation (Rainbow Radio 88.2 FM in Nebbi). My areas of interest are conflict and peacebuilding, business, climate change, health and children and young people, among others."