Museveni Defends Weak Shilling, Cites Export Benefits

President Yoweri Museveni has offered a different perspective on the recent depreciation of the Ugandan Shilling against major international currencies. Contrary to concerns about rising inflation and import costs, Museveni argued that a weaker shilling can actually be beneficial for the country’s export sector.

During a recent address, the President elaborated that a devalued currency makes Ugandan goods and services cheaper for foreign buyers. This, he believes, can stimulate demand for exports, leading to increased earnings for local producers and businesses. He suggested that this competitive advantage could ultimately contribute to economic growth and job creation.

The President’s remarks come at a time when economic indicators have shown some inflationary pressures. However, Museveni appears to be focusing on the long-term benefits of a more competitive export market rather than the immediate impact of higher import prices. He implied that the government is monitoring the situation and making strategic decisions to leverage the current currency dynamics.

While a depreciated currency can indeed make exports more attractive, it also typically leads to higher costs for imported goods, which can affect consumers and businesses relying on foreign inputs. The government’s strategy, as outlined by the President, seems to prioritize boosting export revenue as a key driver for national economic development. Further details on specific policy measures to support this strategy are expected.

Source: https://www.monitor.co.ug/uganda/magazines/people-power/a-depreciated-shilling-is-not-bad-says-museveni-5627596