Uganda’s economy has shown resilience amid regional currency pressures, according to the performance of the economy report for July 2024.
The report noted that Uganda’s shillings were the best performing among the East African Community’s (EAC) five major currencies in July 2024, and they appreciated by 1.1% against the US dollar.
According to the report on Wednesday, August 21, 2024, by the Ministry of Finance, Uganda’s shillings recorded a mid-rate of Shs3,705.85 per USD in July compared to Shs3,747.19 per USD in June 2024.
“This appreciation was on account of the increased supply of dollars, which outstripped its demand,” reads part of the report.
The report confirmed that all the other currencies in the EAC region depreciated against the USD in July 2024, except Uganda’s shillings.
“The Tanzanian and Kenyan shillings depreciated by 1.2% and 0.5%, respectively, while the Rwandan and Burundian francs weakened by 0.5% and 0.2%, respectively,” the report added.
Additionally, the report noted that the high-frequency indicators demonstrate continued improvement in the level of economic activity; similarly, perceptions about doing business remained optimistic.
In June 2024, Uganda traded at a surplus of USD 45.26 million with the rest of the EAC partner states, a shift from the deficit of USD 72.20 million registered the previous month.
