Kampala — The Ugandan shilling weakened slightly on Tuesday due to increased demand
for dollars from merchandise importers and commercial banks, traders reported.
This development highlights the currency’s continued vulnerability to fluctuations in foreign
exchange demand.
According to Reuters, at 0943 GMT, commercial banks quoted the shilling at 3,692/3,702 to
the dollar.
This marked a slight decrease from Monday’s closing rate of 3,688/3,698, underscoring a
modest but noticeable shift in the exchange rate.
Traders attributed the shilling’s dip to heightened dollar requests, a common trend driven
by the country’s reliance on imported goods.
This reliance often pressures the local currency, especially when importers scramble to
secure foreign currency for their transactions.
Despite the slight weakening, the shilling remains relatively stable within its current range,
though analysts caution that sustained demand could exert further downward pressure.
As Uganda continues to navigate the complexities of international trade, fluctuations in the
shilling’s value serve as a reminder of the delicate balance within its financial markets.
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