Uganda Finance Minister addresses shilling depreciation amid conflict and oil price rise
What happened
Henry Musasizi, Finance Minister of Uganda, urged the public to remain calm regarding the depreciation of the shilling. He attributed the pressure on the currency to external factors, specifically rising global crude oil prices and the ongoing conflict in the Middle East. The government plans to use fiscal and monetary measures while boosting domestic production to reduce import dependence.
From allafrica.com
Why it matters
The weakening shilling increases the cost of obtaining foreign currency, which challenges importers who need dollars for fuel, machinery, and industrial inputs. This increased cost of imports can potentially raise production costs and consumer prices across Uganda.
The Economic Policy Research Centre in Uganda is studying how the renewed Middle East conflict is impacting business performance and outlook.
From allafrica.com
Who's involved
- Henry MusasiziUgandan Finance Minister who addressed the currency depreciation and government response.
- UgandaThe geopolitical state experiencing currency depreciation and rising import costs.
- governmentThe governing body of Uganda that is pursuing stabilization policies.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- TotalEnergiesSpeculative
TotalEnergies might see market price changes due to rising global crude oil prices.
The Ministry of Finance, Planning and Economic Development could face fiscal pressure managing the response to rising costs and currency depreciation.
- Uganda National Oil CompanySpeculative
Uganda National Oil Company might see increased operational costs due to rising global crude oil prices.
The Ministry of Agriculture, Animal Industry and Fisheries might face higher costs for industrial inputs due to increased import costs.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Conflict-driven import costs prompt Bank of Uganda rate hikesBank of Uganda raises rates to combat inflation from import cost hikesAlready happening
- Ministry of Finance must manage fiscal restraint amid rising import costsMinistry of Finance must manage fiscal restraint amid rising import costsLikely
- Conflict and currency weakness may raise operational costs for UNOCUNOC may face higher operational costs due to rising global oil prices and shilling depreciationPossible
- Higher import costs may increase input expenses for Uganda's agriculture sectorHigher import costs may increase input expenses for Uganda's agriculture sectorPossible
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The entities involved
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Uganda
country in East Africa
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Henry Musasizi
Ugandan certified public accountant & politician
Nothing else this week.
Related events
- Exporting goods is bringing more dollars into Uganda.
- A business forum was held in Kampala as South Sudan seeks to improve cross-border commerce with Uganda, a priority trading partner.
- Uganda, through Henry Musasizi and the UNDP, is focusing on economic transformation and strengthening development financing cooperation.
- Uganda's central bank addresses currency slump and remittance disruptions while attending international economic meetings in Thailand.
- Uganda is seeking investment from Egyptian investors.