By Rogers Wanambwa 

KIU, Main Campus - The Uganda shilling has appreciated by at least 5.2 % since March when it went as high as 3900 shillings for a dollar, according to data from various banks and forex bureaus,   

The reason noted for this is the low demand for foreign currency by importers during the COVID-19 lockdown and partly due to cash inflows to non-governmental organizations in the country. 

This has caused a reduction of 203 shillings in the exchange rate between the shilling and the dollar as investors took their money out of the country due to fear of the effects of the Coronavirus pandemic to the country's economy. 

This week, the local currency has been trading at 3690 shillings buying and 3700 shillings selling and according to experts, this is good for importers who will need fewer shillings for dollars thus preventing imported inflation in the country. 

The shilling is expected to stay strong against the dollar in the coming weeks as Ugandans receive salaries and wages which are mainly paid out in shillings according to different financial in the country. 

This is also likely to cause a gold rush for currency traders, as they will attempt to buy dollars in bulk now in anticipation of a windfall when the value of the dollar appreciates again when the pandemic is over.

Picture credit: Storyteller Travel