The Ugandan currency is the weakest in Africa... Why?

in #africa6 years ago

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Over the last one decade ie from September 1, 2008 and September 1, 2018 the Uganda Shilling lost the most value to the US dollar among all her neighbors: The Uganda Shilling depreciated 130% to US dollar, Rwanda Franc depreciated 58%, the Kenya Shs 47% and the Tanzania Shs 98%.

In fact the Uganda shilling is the weakest currency in the region - trading at one Kenyan Shilling for 37 Uganda Shillings, one Rwandan Franc to 4.2 Uganda Shillings and one Tanzania Shilling to 1.6 Uganda Shillings.

Even the currencies of the Democratic Republic of Congo (DRC) and South Sudan do better against the Uganda Shilling. For example one South Sudan Pound buys 28 Ugandan Shillings while one DRC Franc buys 2.3 uganda Shilling.

Why is the Uganda weak against global and regional currencies? Is this a good or a bad thing? Who benefits from a weak Shilling?‬ let me hear your views.

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