Ugandan shilling loses 14.68% against dollar since January
By the AFREEQUE newsroom, based on Nile Post
Ugandan MP Patrick Godfrey Wakida says the shilling has lost 14.68% against the dollar since the start of the year, fuelling inflation and raising import costs. He blamed Yoweri Museveni’s economic strategy and cited around $200 million in capital outflows, according to Nile Post.
The Ugandan shilling has lost 14.68% against the dollar since the beginning of the year and 7.29% in October alone, according to Bloomberg data as of 22 October cited by Patrick Godfrey Wakida, MP for Kabweri County. The MP criticised President Yoweri Museveni’s economic management as the depreciation makes imports more expensive and complicates investment in production and industry.
Wakida attributed the decline to capital outflows, dollar demand from manufacturers and energy importers, and rising international oil prices. He said foreign investors had withdrawn around $200 million from Uganda’s financial markets over two weeks, favouring US Treasury bills, according to Nile Post.
The depreciation comes as annual headline inflation rose from 4.1% in August to 4.6% in September, according to the Uganda Bureau of Statistics. Inflation in energy, fuel and utilities reached 14.5%, with annual increases of 30.9% for petrol and 42.5% for diesel. Importers of fuel, machinery and industrial inputs could pass their additional costs on to consumers.
