The Ugandan shilling has hit a record low value against the U.S. dollar currently selling at about 2,410 to one US dollar.

Bank of Uganda June starts

The shillings started losing again against the dollar after a few months of near comeback where the shilling had dropped from the 2,390 mark to about 3,278 in early June.

It is not yet clear why the shilling is dipping further low in value and what the Bank of Uganda plans to do to rescue the shilling against further loss of value.

But increasing imports and demand for foreign products by Ugandans, as well as low imports and cautious investment by some business people into Uganda have been key factors in the near past.

Bank of Uganda Governor Tumusiime Mutebile had anticipated a few months ago that by now, foreign currency inflows into Uganda will be better and the shilling should stablise. The inflows coupled with the expected revenue from oil companies being licensed as well as the Tullow Uganda $400 Million payment for capital gains on acquisition of Heritage assets were expected to bring in more dollars and reduce the shillings fall against the major international currency.

Meanwhile, the Bank of Uganda report for this week shows the shilling money market daily turnover dipped to 26 billion Uganda shillings from 41 billion Uganda shillings, with the 7-day interbank rate edging up.

Ultimate Media