Uganda Central Bank Sells ‘Sizable’ Amount of Dollars to Support Shilling
Uganda’s central bank sold a “sizable” amount of dollars today in its second sale this week to try and support the Ugandan shilling, Kenneth Kaboyo, director of financial markets at Bank of Uganda, said.
“The market was becoming unstable because of offshore demand,” Kaboyo said in an interview in Kampala, the capital. “The currency was under pressure.”
The shilling has weakened 3.4 percent against the dollar this year and traded at 2,390 as of 5:50 p.m. in Kampala. It has lost 21 percent against the dollar since the start of last year. The local currency is undervalued against the dollar and the central bank will take a “more aggressive stance” to support the shilling, Emmanuel Tumusiime-Mutebile, the governor, said on Jan. 19.
The central bank first sold dollars in the market on May 9, Kaboyo said. It is the bank’s policy not to disclose how much it sold, he said.
To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net
To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net
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