Weak shillings- traders cry foul

Shilling and dollar

Ugandan traders have started feeling the pinch of the depreciation of shilling against the US dollar.

The shilling hit a record low of 3,000 against the dollar last evening.

The chairperson Kampala Traders Association Everest Kayondo says the trend is likely to push many traders out of business since they pay rent and purchase goods in dollars.

Kayondo says the situation is likely to worsen in the run up the next year’s elections precipitated by huge government expenditures to finance campaigns.

The depreciating shilling against the dollar has not only affected traders but also forex bureau dealers.

A survey by our reporter at forex bureaus in Kampala city indicates that few people are buying dollars which has slowed business.

Hakim Sekaaya from Bicco forex bureau says many customers have turned away resulting into low profits

He is now appealing to Bank of Uganda to intervene and focus on regulating the factors behind the depreciation of a shilling.