Browsing: Foreign Exchange inUganda

Uganda leads EAC in ease of forex access

Uganda leads East Africa in ease of access to foreign exchange, according to Absa Africa Financial Market Index 2019.

According to the index, Uganda scored 70 out of 100 points compared to Rwanda with 66, Kenya with 65 and Tanzania with 60. Burundi was not surveyed.

Foreign exchange access continues to be a pillar growth across the African continent.

Also Read: Uganda Umeme secures $70m loan for investment

The Absa Africa Financial Markets Index highlights economies with the clearest growth prospects and evaluates financial market development in 20 countries.

The index seeks to show how economies can improve market frameworks to meet investor expectations and sustainable growth.

“Uganda performs strongly … with almost the same score as top-ranked South Africa. It has a high level of foreign reserves relative to net portfolio investment flows and enough reserves to cover more than four months of imports,” said Mr Jeff Gable, the …

Uganda’s monthly foreign exchange between banks stabilise at $20m

Speaking during a panel discussion on the current state of the financial markets at the Barclays Bank organised dealers meeting last week, Mr Peter Mbowa, the Barclays Bank (Absa) Uganda head of treasury, said there has been a steady inflow of foreign currency into the market.

He also noted that “On average, the volume of dollars traded in the interbank market is about $20m a month.”
He further added that wholly Uganda has a dollar demand of $800m per month with exports needing at least $300m in comparison with $500m for the import bill.

However, Mr Mbowa said the Ugandan currency market lacks sophistication and it cannot absorb large volumes of foreign currency.

During the meeting, Brenda Lwanga, a currency trader at Citi Bank Uganda, said that Ugandan shilling has been strong against the dollar because of a strong currency …