Bank of Uganda sells Dollars to revamp shilling
The central bank has sold 20 million US dollars in the foreign exchange market to stabilize the shilling which has edged so low against the dollar this week.
The shilling touched the 2400 edge against the dollar amid fears that it could depreciate further if speculation in the domestic currency is not tackled.
On Thursday, the central Bank Governor, Emmanuel Tumusiime Mutebile, told reporters that the bank would act to curb speculation in the domestic currency.
He explained that the bank intervened after Uganda recorded a 30 million US dollars outflow due to speculation.
The shilling has since January 2011 weakened by 5.1 percent and according to the Bloomberg data, it is so far the fourth worst performing currency this year after the Kenyan shilling, the Sudanese pound and the Tanzanian shilling.
Posted by Basudde Ivan Travis
on 10:27 AM.
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