Before December, the shilling had drastically depreciated and was traded for around Shs3,700 per dollar. Yesterday, it began at Shs3,757.42 per dollar and closed at Shs3746.08, based on a recent report from The Monitor Uganda, a Ugandan-based news platform.
The Bank of Uganda has cautioned that rising external finance demands would put pressure on the shilling, which has been relatively stable since the start of the year.
Yesterday, while giving the Monetary Policy Report for April in Kampala, Bank of Uganda deputy governor Michael Atingi-Ego stated that rising external funding needs are projected to exert pressure on the shilling, perhaps causing it to weaken. The shilling has been volatile compared to the dollar this month, partly due to ongoing capital outflows and debt defaults.
