Literally all forex bureaus in downtown Kampala are quoting the Shilling-dollar exchange rate at over 3,800. This is a new low considering that for the last month it had not breached the Shillings 3,800 ceiling.
The 3,800-Shilling mark implies increase in cost of imported essentials like fuel which would in turn push up the cost of transportation and productive activities.
Another reason for the depreciating Shilling, according to financial experts, is rising sentiments ahead of the reading of the 2018/19 national budget.
The upcoming budget stresses revenue mobilisation, by introducing new taxes like on mobile money transactions and use of social media.