Bank of Uganda explains currency dynamics
Sees increase in demand for the greenback to fund imports and pay dividends
The Bank of Uganda issued a statement to clarify its decision to intervene in the foreign exchange market yesterday, and offered an explanation as to why the Uganda shilling is sliding against the US dollar.
It offered two main reasons for the depreciation of the exchange rate, the first being the "dramatic" strengthening of the dollar on global markets that has seen it rise in value compared to a good deal of currencies.
The central bank also offered a more introspective, second reason, citing
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