Shilling flat, inflows may offer support

folarin okunola

September 22, 2015 5:59 PM

The Bank of Africa said the currency could receive support from dollar inflows from aid agencies that are also known as non-governmental organizations.

The Ugandan shilling was stable on Tuesday and traders said dollar inflows from private aid agencies could offer support to the currency.

At 0924 GMT, commercial banks quoted the shilling at 3,653/3,663 per dollar, unchanged from Monday's closing rate.

The Bank of Africa said the currency could receive support from dollar inflows from aid agencies that are also known as non-governmental organizations.

Most charities receive donations in hard currency that they convert into the local currency toward the end of the month to pay salaries and meet other operational expenses.

READ: Nigeria received $21bn from citizens in Diaspora in 2014 – World Bank

The shilling is 24.2 percent down against the dollar so far this year mainly due to the strength of the greenback.

A series of central bank interventions and an aggressive monetary policy tightening cycle helped cool soaring depreciation pressure that had pushed the shilling to an all-time record low of 3,685/3,695 on Aug. 25.

Traders said the currency could however remain under pressure over the long term due to higher public spending and increased imports.

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folarin okunola