Uganda's shilling weakened to a record low of 4,025 per dollar on Monday, crossing the 4,000-shilling psychological mark. The currency later stabilized at 4,018 shillings by 1 p.m. London time. This six-day losing the shilling's worst performance in Africa this year, trailing only Ghana's cedi. The local unit has depreciated 10% against the dollar year-to-date. Absa Group Ltd. forecasts the shilling will remain "vulnerable to renewed dollar demand" from offshore investors and corporate importers in energy, manufacturing, and telecommunications. High oil prices and Middle East conflict uncertainty are expected to exacerbate depreciation trends. The Bank of Uganda posted the exchange-rate data on its official website.
Significant foreign exchange inflows and policy measures may be required to stabilize the currency amid persistent dollar pressure and broader macroeconomic headwinds affecting the East African nation.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing