Uganda Shilling Forecast to Fall as Other Currencies Steady
Uganda's shilling is expected to weaken due to dividend payments by foreign firms. Meanwhile, currencies in Nigeria, Ghana, Kenya, and Zambia remain stable.
African currency markets are displaying a divergence in performance as the week concludes, with most major units expected to remain stable while the Ugandan shilling faces downward pressure. Market analysts attribute these trends to a combination of central bank interventions, corporate dividend cycles, and commodity export revenues.
In Uganda, the shilling is forecasted to weaken against the U.S. dollar in the coming week. This trend is primarily driven by heightened demand for foreign currency from foreign-owned corporations seeking to repatriate dividends. Commercial banks recently quoted the shilling at 3,595/3,605, a slight decline from the previous week's close of 3,585/3,595. Traders expect the local unit to trade within a range of 3,580 to 3,620 against the dollar as dividend payments continue to exert pressure on supply.
