Uganda Shilling Hits Record Low of Shs4,500 Per US Dollar

The Ugandan economy faced a tense morning as the local currency briefly depreciated to the Shs4,500 region per US dollar during early trading hours on Friday. According to official Bank of Uganda counter rates, this dramatic dip represents the weakest level recorded by the shilling in 33 years.

Following the sharp early morning fall, the currency managed to claw back some of its losses, recovering to trade at Shs4,404 by midday. Market analysts noted that this represented the most volatile intraday swing since the currency initially breached the Shs4,000 threshold on October 5, a milestone that had previously seen the central bank log a closing mid-rate of Shs4,023.

Traders and financial experts attribute the ongoing currency slide to a combination of heavy panic buying, surging dollar demand from the vital energy sector, and a wave of offshore investors seeking to exit Uganda’s domestic bond market.

Financial data indicates that the shilling has surrendered more than 10 percent of its value since late August. This steep trajectory has positioned it as the poorest performer among the 144 global currencies tracked by Bloomberg for the month.

For more details on this developing financial story, read the original report on Daily Monitor.