Uganda: Shilling Drops to Shs 3640 Against the Dollar

The Uganda shilling has started the week at the lowest point ever, trading at Shs 3630.65/3640.65 buying and selling respectively on Monday - confirming fears that the economy's 5.8 per cent growth projection will not be achieved. On Friday, it traded at Shs 3575.

The continued depreciation of the local currency raises fears of inflation, currently at 5.4 per cent but is projected to go above 10 per cent by next year. A weak shilling also slows down investment as becomes extremely expensive for investors to import capital goods for investment.

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