Bloomberg News

Uganda Shilling Falls 2nd Day on Oil Importers’ Dollar Demand

October 10, 2011

Oct. 10 (Bloomberg) -- Uganda’s shilling weakened for the second day as oil importers and telecommunication companies bought dollars to import supplies.

The currency of East Africa’s third-biggest economy depreciated 0.2 percent to 2,870 at 11:44 a.m. in the capital, Kampala, according to data compiled by Bloomberg. It closed at 2,865 on Oct. 7.

“We are seeing demand for the dollar continuing to pile in the market,” Faisal Bukenya, the head of currency trading at Barclays Bank Uganda Ltd., said by phone from Kampala. “Demand is coming from the energy and telecommunication sectors.”

Uganda’s shilling reached 2,897.50 on Sept. 23, the weakest since June 1993. The currency of Africa’s second-biggest coffee exporter has slipped 20 percent this year to the dollar, making it the second-worst performer after Kenya’s shilling. A surge in food and fuel prices pushed inflation to a more than 18-year high of 28.3 percent this month from 22 percent in August, the Uganda Bureau of Statistics said today.

--Editors: Ana Monteiro, Peter Branton

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


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus