Ugandan Shilling Leads East African Currencies in May 2024

Summary:

• The Ugandan shilling outperformed other East African currencies in May 2024, strengthening by 0.8% against the US dollar, driven by increased exports and NGO contributions.

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KAMPALA, (Examiner) – In May 2024, the Ugandan shilling emerged as the top performer among the major currencies of the East African Community (EAC), according to a report released by Uganda’s Ministry of Finance. While other EAC currencies experienced depreciations against the US dollar, the Ugandan shilling strengthened by 0.8% during the period under review.

The report highlighted that the Burundi Franc, Rwanda Franc, and Kenya shilling depreciated by 0.2%, 0.5%, and 0.1% respectively. Meanwhile, the Tanzanian shilling remained relatively stable with a marginal depreciation of 0.05%.

Key factors contributing to the Ugandan shilling’s appreciation included increased inflows of dollars from exports such as coffee and contributions from non-governmental organizations (NGOs), amidst subdued demand for the dollar.

The mid-rate for the Ugandan shilling stood at sh3,791.4 per dollar in May, marking an improvement from sh3,822.7 in April 2024.

This performance underscores Uganda’s resilient economic position within the East African region amid currency fluctuations and global economic dynamics.

editorial@examiner.co.ug

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