The Uganda Importers, Exporters and Traders Association (UGIETA) have asked the government to intervene in the economy to prevent the Uganda shilling from further depreciation.

UGIETA general secretary Emmanuel Lubandi says the business community is reeling from the effects of an unstable and depreciating shilling on trade.

He says the current Ugandan shilling exchange rate is negatively impacting on our businesses and ultimately the entire economy.

The government admitted recently that the Uganda shilling which hit 2,700 to one US dollar is the lowest the local currency has been. It is now currently trading at 2,500 to one US dollar.

The minister of finance Maria Kiwanuka recently said they cannot intervene in the forex market saying since Uganda is a liberalised economy, things have to be decided by forces of demand and supply. She says the government will instead undertake export promoition to ensure Uganda earns enough foreign currency.

But Lubandi says if the exchange rate is left to demand and supply, many Ugandans will lose out as many goods will become unaffordable.

Ultimate Media