Increased foreign investments helped Shilling appreciate

Friday September 17 2021
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A client exchanges money at a bank. PHOTO/FILE

By MARTIN LUTHER OKETCH

The Uganda Shilling strengthened against the US Dollar, trading at an average mid-rate of Shs3537.04 per US dollar in August 2021 from Shs3552.31 per US dollar recorded the previous month. 

The Ministry of Finance, Planning and Economic Development says in its August economic net inflows from remittances and portfolio investments which outmatched corporate demand resulted in an appreciation of the Uganda  Shilling against the US dollar during the month. 

Uganda foreign market is determined by the forces of supply and demand due liberalization policy in place.
The Ministry of Finance, Planning and Economic Development explains that the forex trading market was largely characterised by balanced supply and demand for the US Dollar. 

In relation to other hard currencies, the Ministry of Finance, Planning and Economic Development points out that the Ugandan Shilling strengthened by 0.9 percent and 0.5 percent against the Euro and the Pound Sterling respectively in August 2021.

The Ministry of Finance says while the Ugandan Shilling appreciated, the Kenyan shilling, Rwandese and Burundian Francs all depreciated against the US Dollar, while the dollar value of the Tanzanian shilling remained unchanged 

In August 2021 Kenyan Shilling traded between KES 109 .4 per US dollar for most days of the month which reflected a slight stable appreciation against the US Dollars.

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During August the Tanzanian traded at TZS 2,319 per US Dollar which points to a static rate during the period. 

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