Breaking

Shilling Falls to another Record Low

The Ugandan shilling fell against the dollar again on Monday. Traders said on Monday that substantial oil-sector demand for dollars has pushed it to another record low.


The Ugandan shilling fell against the dollar again on Monday. Traders said on Monday that substantial oil-sector demand for dollars has pushed it to another record low.



By Monday afternoon, the shilling was trading at a new record low of 2,450 compared to the 2,445 hit on Friday last week.



Lucas Ochieng, explained that the depreciation in the value of the shilling is mainly caused by the oil sector demand for dollars, some panic-buying and some speculative activity.



Last week, the central bank intervened by selling $20 million Dollars in the forex market to boost the ailing currency and the central bank governor Tumusiime-Mutebile said he would "nothesitate to tame" speculators and that he had enough reserves to do so.



A notice to clients at Barclays bank on Monday stated that if the Central bank intervened in

the market again this week, it was likely to "come in more aggressively".



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