‘Uganda Shilling, world’s worst performer’

SOURCE: THE DAILY MONITOR, 07/08/2011

The Uganda Shilling, is now the worst performing currency in the world. It has been at the bottom for the last two months now. The Shilling has depreciated by 10 per cent against the dollar over the last two months, making it the world’s worst performer in the period.

The Shilling this week, fell to the lowest in five weeks against the dollar as demand for the US currency outweighed its sales by the central bank. The currency of Africa’s second-biggest coffee producer depreciated 0.9 per cent to 2,672.5 per dollar, the weakest intraday level since June 30, by August 4, at 2:37 p.m. in Kampala.

The central bank sold a “reasonable” amount of dollars, the second time in a week, after witnessing volatility in the market, Mr Stephen Kaboyo, the director of financial markets at the central bank, told Bloomberg news agency, by telephone from Kampala.

Inflation stands at 18.7 per cent, the highest in ten years.