Vivo unveils Shs5b fuel reserves

KAMPALA

Currency analysts predict that the Uganda Shilling might continue to depreciate against the US dollar for some time due to increased demand for the Greenback.
With the dollar demand staying high amidst reduced inflows, the Uganda shilling is expected to trade in the range of Shs2590 buying and Shs2,630 selling per US dollar.

Yesterday, the shilling opened trading at 2,609.29 buying and s2,619.14 selling per US dollar. By midday, it was trading at 2,615.08 buying and 2,624.7 selling per US dollar.

The head of market making Barclays Bank Uganda, Mr Faisal Bukenya, told the Daily Monitor yesterday that currently, the demand for the US dollar is higher than inflows.
Mr Bukenya said the high demand for US dollars is coming from two major sectors of the economy manufacturing and energy.

He said the inflows of US dollars into Uganda has been flat due to aid cuts while the offshore investors also exited the market in the middle of last month due reduction in treasury bills and bonds yields (interest rates).
Increased imports
The weakening of the Uganda Shilling is also likely to pick up in imports. Bank of Uganda’s economic report of June 2014 indicates that Uganda’s import bill increased by 14.1 per cent on quarter to quarter which amounted to $1.397 billion (Shs364.617 trillion).
On June 25, Bank of Uganda, issued a statement saying the Shilling had depreciated against the US dollar by 2.3 per cent.

moketch@ug.nationmedia.com

SOURCE: Daily Monitor

Leave a Reply

Releated

Arrest of CNN Crew in Minneapolis a ‘Violation of First Amendment’

A CNN news crew on Friday live broadcast their own arrest by police in the U.S. state of Minnesota, as they covered protests over the death of an African-American man. Police handcuffed and arrested CNN reporter Omar Jimenez, producer Bill Kirkos and photojournalist Leonel Mendez at about 5 a.m. CT in Minneapolis, despite Jimenez identifying […]

‘No Decision’ on Next Launch Attempt for SpaceX-NASA Mission

A final decision on a launch attempt for SpaceX’s milestone mission to the International Space Station on Saturday afternoon will take place after assessing the weather that morning, NASA chief Jim Bridenstine said Friday. Fears of a lightning strike postponed the initial takeoff attempt Wednesday of what would have been the first crewed rocket launch […]