TREE NEWS reports: The Ugandan shilling fell to its weakest level in two and a half years, sliding to 3,925 shillings per dollar in early trading before recovering to 3,910, as foreign-exchange demand from the energy, manufacturing and telecommunications sectors surged. The prior closing low was 3,924 per dollar in March 2024. Citi analysts attributed the move mainly to offshore investors adjusting positions rather than domestic fundamentals, expecting the shilling to trade between 3,900 and 3,930 until the global macro backdrop improves.
Ugandan Shilling Hits Weakest Since 2024 as FX Demand Surges
AI take
The distinction Citi draws matters more than the level itself: if offshore repositioning, not local fundamentals, is driving the slide, the shilling's near-term path depends on global risk appetite rather than Ugandan policy. That leaves domestic importers in energy, manufacturing and telecoms exposed to a currency move they cannot influence. Whether the projected range holds, or offshore flows keep pressing, is the open question.
Generated by AI for reference only.
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