Business and Finance

BoU sells Shs87b to save Shilling

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The Central Bank this week sold $35 million (Shs87billion) to try and curb the fast depreciation the Shilling is experiencing against the US dollars. Over the past two weeks, the Shilling lost value against the US dollar by Shs35, the rate BoU described as “sudden depreciation,” which, necessitated policy intervention from the sale side to lower the rate of depreciation. The Executive Director Operations at the Central Uganda, Mr Philip Wabulya, said: “Over the last two days we intervened in the market twice by selling $20 million and $15 million on the second day.” The depreciation is due to increased demand for the US dollars by the corporate and reduced inflows of the dollars. By close of Thursday, BoU official exchange rate was at Shs2, 493.73 buying and selling at Shs2, 503.77 per US dollar. The intervention has, however, managed to reduce pressure on shilling depreciation by a small margin. moketch@ug.nationmedia.com

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