Uganda’s central bank has today intervened in the Forex market to restore sanity .
This intervention comes a day after the Central Bank Governor Emmanuel Tumusiime Mutebile told a group on Manufacturers he ‘had given up on the shilling. A statement by the Ugandan Central Bank’s director Christine Alupo says the Bank sold dollars ”to smoothen out excessive volatility in the movement of the exchange rate”
The intervention according to the statement ”is intended to remove the spikes in the movement of the shilling against the U.S. dollar that have been observed lately” The Uganda shilling lost over 300 shillings against the dollar in between the publication of the Bank of Uganda Governor’s statements and today Thursday an is currently selling at 3618 for every one dollar.
The statement Further Points out that ”Today’s actions are not aimed at official determination of the exchange rate. The Uganda shilling exchange rate remains market determined”
Given the recent developments, the Monetary Policy Committee will meet on Monday, July 13, 2015; to assess the current state of the economy, and respond appropriately.