BoU steps in to save shilling

By Billy Rwothungeyo

THE Bank of Uganda (BoU) on Thursday sold an unspecified amount of US dollars to the market to contain the volatile movement of the exchange rate.

The intervention on the sale side of the interbank foreign exchange market is intended to halt the unprecedented slide of the Ugandan shilling against the dollar.

“The recent sharp movement of the currency partly resulted from negative sentiment about the shilling. The BoU is not indifferent to the volatility in the foreign exchange market and stands ready to intervene whenever it is necessary,” read a statement by the central bank’s director communications, Christine Alupo posted on BoU’s website.

“Today's intervention reaffirms BoU commitment and capacity to maintain the integrity of the shilling. The Uganda shilling is not a one way bet.”

However, the statement stresses that the move is not aimed at official determination of the exchange rate.

With the shilling in free fall, the Monetary Policy Committee recently decided to meet one month earlier—on July 13.