The Uganda shilling has lost ground against the US dollar for the second day running. Financial experts in Kampala say the development has been caused by increased demand for the US dollar by Uganda local banks.
Some of the Uganda banks are Stanbic, Centenary, Equity, Crane and Bank of Baroda among others.
Most commercial banks are buying each US dollar at 2288 Uganda shillings. On Tuesday (29th June 2010) Uganda banks bought the same dollar at 2,280/2,285 shillings. On Monday (28th June 2010) each US dollar sold at 2,255/2,260 Uganda shillings.
George Walusimbi, a finance expert at Stanbic Bank says the trend has been caused by low dollar inflows to Uganda which creates high demand for them.
Some financial dealers in Kampala are hording US dollars such that the country’s shilling continues losing ground against the US dollar so as to get higher profits from currency sales in the long run.
If the situation remains the same, the country is likely to soon face increased prices of consumables especially petroleum which is imported.
Walakira Nyanzi, Ultimate Media