The Uganda shilling continued to battle a range of headwinds surrendering gains post Bank of Uganda intervention. Foreign portfolio disinvestment was the main driver of the currency weakness during the week. Trading was in the range of 3770/80. A weak shilling has a number of implications for the country’s growth prospects. It reduces the purchasing power, makes imports expensive, fuels inflation, increases the government’s cost of borrowing at the same time making debt servicing difficult.In the regional markets, currencies were on similar decline with Kenya shilling trading at 117:20/40.In fixed income, the outturn in the local bond market was reflective…
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