Uganda Shilling to Weaken Further by End of 2017 – Stanbic Bank

1597 Views Kampala, Uganda

In short
Jibran Qureishi, the Standard Group Regional Economist for Africa, told the China-Uganda Economic Forum in Kampala that a stronger dollar will most likely weaken the Shilling to 3,900 from the current average of 3,600.

Economists predict that the Ugandan Shilling will most likely weaken significantly by year's end due to a resurgent dollar against all major currencies.
 
Jibran Qureishi, the Standard Group Regional Economist for Africa, told the China-Uganda Economic Forum in Kampala that a stronger dollar will most likely weaken the Shilling to 3,900 from the current average of 3,600.
 
Standard Bank is the parent company of Stanbic Bank, Uganda's biggest bank.
 
According to Qureishi, the depreciation of the Shilling will be due to outflows to the United States which increased interest rates on Wednesday, adding that the strong dollar will affect not only the Shilling but other currencies as well.

 
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Qureishi said 2016 saw many offshore investors coming into the money markets but with a stronger dollar many will most likely move out their monies.
 
Qureishi said although the Shilling will weaken, it won't be to the level after the 2011 general election nor that of 2016. Then the Shilling was in free fall against the greenback.
 
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Stanbic Bank Uganda's Head of Corporate and Investment Banking, Edwin Mucai, said although the Shilling will depreciate that in itself is not bad for economic growth.
 
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The Shilling has been averaging between 3590 on the buy side to 3610 on the sell side for a while.

 

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."