Saturday 9 June 2007

Uganda: Capital Inflows Strengthening Shilling

East African Business Week (Kampala)
4 June 2007Posted to the web 4 June 2007
Edris KisambiraKampala

While the dividends of peace in southern Sudan cannot be discounted as a factor in an appreciating Uganda shilling against the US dollar, the Bank of Uganda (BoU) has pointed to increases in capital inflows as the main factor pushing it.

Increasing capital inflows take the form of foreign remittances from Ugandans abroad as well as NGO money, foreign direct investment (FDI) in infrastructure projects as well as the money markets.

Other key factors include a weakening dollar against many other currencies worldwide and the general improvement in Uganda's terms of trade with her trading partners. [Read more]

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