Uganda shilling hits record low against dollar
The Uganda shilling has weakened by about 12% against the US dollar, pushing up the cost of living.
The Uganda shilling is at a record low against the US dollar, depreciating by about 12% and increasing the cost of living. Imports are now more expensive, impacting industries reliant on foreign materials and driving up prices for essential goods like fuel. The dollar now costs over 4400 shillings, making a liter of gas approximately 7000 UGX.
This currency weakness benefits a minority of exporters but squeezes households and small businesses, which form the backbone of Uganda's economy. The Bank of Uganda raised interest rates to 12% in October to combat inflation, which stood at nearly 5% in September.
The price of a loaf of bread is set to rise from 5000 UGX to 8000 UGX due to increased wheat costs. Transport fares have also increased, with a 1000 UGX journey now costing 1500 UGX or more, affecting families on fixed incomes.
Why it mattersUgandan households and small businesses face rising costs for essential goods and transport due to the weakening shilling.