Uganda to borrow USD200 M to support currency

Uganda plans to borrow $200 million from the Eastern and Southern African Trade and Development Bank, known as PTA Bank, to support the shilling currency, Finance Minister Matia Kasaija said on Monday.

“We’re borrowing $200 million from the PTA Bank to support the shilling,” Kasaija told Reuters. “Discussions are concluded and cabinet approved last week. We’re now waiting for parliament to approve.”

Uganda‘s central bank has sold dollars on numerous occasions this year to support the shilling, which is down about 17 percent against the dollar in 2015.

Uganda‘s inflation rose to 9.1 percent year-on-year in November from 8.8 percent a month earlier, the statistics office said on Monday.