/ 15 February 2000

UGANDA INTERVENES TO PROTECT SHILLING

THE Bank of Uganda intervened in the money market on Tuesday to prevent the shilling from sliding further against major currencies. BOU spokesman Walugembe Musoke said that a further seven million dollars has been injected into the forex market, where the shilling has continued to lose ground against other currencies, in an effort to hold it steady. The latest intervention brings to about $37-million the amount injected into the market since the beginning of the year. The shilling has been losing ground in the last few days and dealers have blamed this on a reduced inflow of foreign exchange because exports of coffee have declined.