Basing on reduced US dollar remittances into the economy last December, Forex market operators are warning of a further battering of the shilling.
Experts fear the dollar scarcity that led its value to shot up by 30% from Shs 1,700 to the dollar to Shs 2,200 before settling in the upper Shs 1,900s by years-end could persist into early 2009.
Mr. Hashim Kirungi of Bank of Uganda’s Media Relations Desk said month–on-month, for example, the shilling depreciated by 16.9% against the US dollar from July 2008 to November 2008. He attributed it to the increased demand for foreign currency from both corporate and offshore players and the dollar’s gaining strength against other major international currencies in the market. Read more
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