BoU dispels fears on growth as Shilling weakens

Posted Tuesday, January 25 2011 at 00:00

The central bank is optimistic that the depreciation of the Uganda shilling against the US dollars will have no impact on the country’s economic growth arguing that depreciation can lead to higher economic growth by stimulating exports.

Given the fact that the current shilling depreciation against the US dollar will have no impact on the level of economic growth and the foreign exchange reserve, the central bank argues that the projected GDP growth rate of 6 per cent to 7 per cent for this fiscal year 2010/11 will be achieved and the monetary policy target of keeping inflation at 5 per cent or below will also be achieved.Read More