Uganda Shilling Increases as Oil Prices Decline.

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The rise in the import bill brought on by a significant increase in oil imports and the high cost of debt servicing has put pressure on the shilling.

The Bank of Uganda recently voiced worry, pointing out that low inflows and the high cost of debt repayment were having an effect on dollar reserves.

The shilling is under a lot of strain due to the increased demand for dollars from oil importers. The Bank of Uganda reported in August that there was a 58 percent increase in the demand for dollars. This is for imports connected to oil.

The recent drop in the price of commodities throughout the world, including crude oil, has further encouraged the appreciation.


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