East African currencies, including the Ugandan and Tanzanian shillings as well as the Rwanda franc have taken a beating as they continue to weaken against the dollar.
The Ugandan shilling has edged downwards by 3.6 per cent against the dollar since January while the Tanzanian shilling has edged by 1.8 per cent. The Rwanda franc has been a bit resistant only weakening by 0.9 per cent.
However, the continued weakening, according to Mr Louis Kasekende, the Bank of Uganda deputy governor had presented a serious threat to the economy thus forcing the Central Bank to intervene.
Mr Kaboyo said that although the Kenya shilling had maintained a relatively firm outlook, it risks depreciation pressures that are mainly expected to build from importers.
Source: Daily Monitor