Uganda Shilling slides nearly 6% against the dollar

[Da Dona]

The Ugandan shilling has weakened sharply in September, losing nearly 6% against the US dollar after a period of relative stability.

The shilling averaged Shs3,704.51 per dollar at the end of August, but trading closed at about Shs3,917 on Monday. On Tuesday, it opened at Shs3,903 before weakening to around Shs3,920 by midday.

Economists warn that continued depreciation could increase the cost of imported goods and add pressure to inflation.

Fuel prices are already high, with petrol selling for as much as Shs6,899 per litre and diesel at about Shs6,699 at some major stations.

With fuel affecting transport, agriculture, manufacturing and the distribution of goods, further price increases could be felt across the economy.

The reasons behind the sharp September decline remain unclear, with the Bank of Uganda yet to respond to inquiries about the movement.

How are the weakening shilling and rising fuel prices affecting you?​