The Ugandan shilling hit an all-time low to the dollar on Wednesday after a surge in demand for the U.S. currency by commercial banks ahead of a budget reading on Thursday.
At 0954 GMT commercial banks quoted the shilling at 3,125/3,135 against the dollar, weaker than the previous record low of 3,116/3,126 reached in March this year.
“The demand pressure is coming from commercial banks and it has something to do with the budget … most are covering short positions as they don’t want to be caught short,” said Shahzad Kamaluddin, a trader at Crane Bank.
Reuters
