The recent political events in the country have weakened the Uganda shillings in financial markets. Uganda witnessed series of protests in recent weeks following the arrests and jailing of opposition leaders. The event led to deterioration of Uganda shillings against US dollars. Currently a dollar is trading between 3750 and 3760 the lowest rate since May this year.
The interbank money market rate as at 6 percent few days ago unlike 9 percent as of one week ago. While in the fixed income there was no treasury auction recorded.
Economic analyst president tough times for Ugandan traders if the current political stand off between the opposition and ruling party is not treated with the urgency it deserves. Several business men especially those in hospitality industry are expected to be hit hard. This is because several tourists have in recent one week cancelled their already booked tripped to Uganda. Hotels owners around the country are counting losses as majority of people fear to travel far from their home district.
Mr Stephen Kaboyo the Managing Director at Alpha Capital Partners has urged the politicians in the country to sort out their differences in diplomatic manner in order to realize economic growth.
“Forecast for the shilling indicate a stable unit as political tensions ease and end month NGO conversions and export flows improve the supply side. Markets expect supply and demand to be evenly matched,” he asserted.
This sentiment was shared by several economists urging government to reconcile with those in opposition.