Uganda Shilling Hits Record Low as Oil Shock Pressures African Currencies

AFRICA: Uganda’s shilling has fallen to a record low against the US dollar as higher global fuel prices and strong importer demand for foreign currency pressure several African economies.

Energy import bills drive dollar demand

Reuters reported the Ugandan currency trading around 3,965-3,975 per dollar. Energy-sector importers have been seeking dollars as global fuel supply concerns increase costs.

Zambia’s kwacha is also under pressure after a sharp increase in fuel prices, while Ghana’s cedi has weakened amid persistent dollar demand. Kenya’s shilling has remained comparatively stable.

Currency weakness can feed inflation

When local currencies weaken, imported fuel, machinery and other goods become more expensive. That can raise consumer prices and increase costs for businesses.

Follow African economy news at NewsNationOnline. Source: Reuters.

Imran Siddiqui

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