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.
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.
