Commodities
Uganda Shilling Plunges Past Shs3,900 Amid Global Oil Price Surge
The Uganda Shilling has plummeted to its lowest level in nearly two years, weakening beyond Shs3,900 against the US dollar due to a surge in global oil prices. The increase in crude prices has triggered heavy demand for dollars from fuel importers, causing the local currency to depreciate.
According to Forex market expert Stephen Kaboyo of Alpha Capital Partners, the local unit is moving in lockstep with crude prices. This means that as oil prices rise, the shilling weakens against the dollar.
The Bank of Uganda reported that the monthly appreciation of the shilling was supported by continued strong inflows of US dollars from the mining and energy sectors, agricultural export proceeds, and remittances.