East Africa news update – Local currencies fall to record lows


The currencies of Eastern African countries, in Uganda, Kenya and Tanzania, fell to record lows in recent days as speculation against the respective Shilling currencies continued and locally influenced by strong demand for Dollars and Euros for loan payments and dividend transfers.

While tourists may celebrate the windfall more woes are in store for the locals here in East Africa and imports of petroleum products will inevitably raise the cost of petrol and diesel yet more, affecting in the process the cost of transportation of food stuffs while all other imports of goods and services will cost yet again more while these record levels persist.

Central Banks in the region are said to be in close contact discussing market interventions to halt the slide and in particular Prof. Tumusime Mutebile of the Bank of Uganda warned speculators on the local market to stop their artificial moves against the Uganda Shilling or else would the Bank react with regulatory measures to calm the market down. 



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