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Bank of Uganda explains weak shilling

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by ByaseL, Jun 23, 2011.

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    ByaseL JF-Expert Member

    Jun 23, 2011
    Joined: Nov 22, 2007
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    The Eurozone debt crisis is the major cause of the turbulent exchange rate, which pushed the shilling to a record low of 2,478 on Tuesday, the Central Bank clarified on Tuesday.

    While the US economy is not yet fully on its feet, four major European economies Greece, Portugal, Spain and Ireland are battling a financial meltdown.

    Because of this, investors holding assets and other investments in euros are converting them into dollars.

    This has caused an unprecedented demand for the dollar, making it more expensive internationally.