Uganda shilling remains resilient despite appreciation

By Tom Angurini

A report by the Uganda Bureau of Statistics has shown that the Ugandan Shillings remained resilient registering a mild appreciation of 0.6 percent despite a relatively significant depreciation of the exchange rate in March and May.

The report shows that the country’s macroeconomic stability is underpinned by a fairly high degree of exchange rate flexibility and central Bank independence consequently average inflation remained low and below the 5 percent government target.

UBOS director macroeconomics, Alikiza Kaudha meanwhile reveals that there was a slowdown in economic activity and income in different sectors which affected servicing of loans by borrowers.

She says this resulted in an increase in the ratio of non-performing loans to total lending of 5.7 percent in 2020 compared to 3.8 percent in June 2019.

Written by Noelyn Nassuuna