The Independent (Kampala)

Uganda: Shilling Continues to Weaken, Says Expert

Denis Mashanyu, the forex trader at Standard Chartered Bank says the Uganda shilling weakened against the US dollar during the week that ended Dec. 7 closing 2690/00 from the previous close of 2675/85.

Mashanyu said the move came after the central bank cut the central bank rate by 50 basis points to 12% from 12.5%.

"Next week we expect the market to remain largely stable with a bias towards further local unit depreciating," he said, adding we expect the shilling to trade in the range of 2680-2710 though with thin liquidity as major players slow down ahead of the festive season.

The monetary policy statement read by central bank Governor on Dec4, Emmanuel Tumusiime Mutebile said economic growth is expected to slow due to aid cuts by donors thus justifying further easing despite the inflation figure having moved up to 4.9% in November from 4.5% in October. Bank of Uganda expects core inflation to settle at around 50% in 2013.

Ads by Google

Copyright © 2012 The Independent. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.