Uganda Shilling hits all-time low

A trader displays Uganda Shilling notes. IMF says there is likelihood of exchange rate depreciation as has already been observed in South Africa, Nigeria, Ghana and Zambia.

The Ugandan shilling has touched a new low against the dollar as angst over the impact of conflict in major export markets – Sudan and Burundi – and fears of rampant pre-election spending dominated trading, Reuters news agency.


Traders said the strength of the dollar also weighed on the local currency and that trend was set to persist.

Several commercial banks quoted the shilling at 3,435/3,445, an all-time low and down from Friday’s close of 3,380/3,390.

The shilling has lost a fifth of its value against the dollar this year, Reuters reports.

Its not only the Uganda shilling that has been affected.

Kenya’s shilling has weakened to a fresh three-and-a-half year low, hitting the 100 level against the dollar for the first time since October 2011, Reuters news agency reports.

Traders said the shilling started weakening in early trade due to concerns of a widening current account deficit and on a stronger dollar globally after Greece voted against the bailout conditions demanded by its creditors, it reports.

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