• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Kenya Shilling plummets as Ugandan banks and traders rush to offload currency

2 years ago
in Business, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
134
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

RelatedPosts

Fitch Solutions Revises Ghana’s 2025 Growth Forecast Upwards to 4.9% on Easing Inflation and Stronger Cedi

Nigeria, Kenya Follow Ghana’s Trailblazing GoldBod to Strengthen Economies

Morocco Crowned World Champions at the FIFA U-20 World Cup

Kenya Shilling plummets as Ugandan banks and traders rush to offload currency

Panic sale by Ugandan banks and currency traders has resulted in a dramatic devaluation of Kenya shilling relative to the US dollar, as well as a shortage of the Kenyan unit. As a result, Kenya shilling to Uganda shilling exchange rate fell from an average of Ush30 to a record low of Ush24 last month. However, the Kenya shilling rebounded marginally to Ush26/27 versus the Uganda shilling.

Despite an open capital account framework that facilitates frictionless admission and exit of foreign currencies in Uganda’s financial system, a spot-check in Kampala’s downtown forex bureaus reveals an apparent scarcity of Kenya shillings among forex dealers.

During the first quarter of 2023, Kenya paid off a few large international debts that had drained its foreign reserves. Its reserve balance was insufficient to settle future obligations or safeguard its currency against external shocks.

For fear of incurring trading losses on their books, Ugandan banks and forex dealers chose to sell the majority of their Kenya shillings in exchange for dollars. This explains why Kenyan shillings are scarce,” said Allan Lwetabe, Investment Director of Uganda’s Deposit Protection Fund.

“The recent political protests in Kenya caused worry among investors and this led to capital flight within the country’s financial markets. This wave of fear also caused panic among Ugandan banks and many of them were forced to exit their long-term Kenya shilling positions.

As a result, several banks offloaded lots of Kenya shillings over the past two months replacing them with dollars or taking up currency swaps. The Kenya shilling short-term outlook remains fragile because of unresolved domestic political issues,” said a trader at Stanbic Bank.

On the morning of June 12, 2023, an Entebbe Airport-based currency bureau quoted the Kenya shilling vs Uganda shilling exchange rate as Ush18/28 (buying and selling). That’s a hefty 10-shilling spread.

“I did an export transaction in early June when the Kenya shilling value stood at Ksh137 to the dollar. By my second transaction, the Kenya unit had depreciated to Ksh139 to the dollar. On my third transaction last week, the shilling had dropped to Ksh142. This has compelled me to pay in dollars whenever I buy new stock to avoid currency losses,” Dick Wadada, a hardware trader said.

Tags: Kenya ShillingKenya Shilling plummets as Ugandan banks and traders rush to offload currencyUgandan banks
No Result
View All Result

Highlights

GPL: Gold Stars Seek Redemption, Eleven Wonders Hunt First Win in Super Monday Doubleheader

OMCs Begin Over 4% Fuel Price Reductions Amid Cedi Gains and Decline in Global Oil Prices

Nigerians to pay more for ChatGPT on OpenAI’s 7.5% VAT

Prof. Baah-Boateng Urges Bank of Ghana to Prioritise Cedi Stability Amid Sharp Currency Swings

IMF Executive Board to Consider Ghana’s Fifth Programme Review in Early December

Rwanda Emerges as Africa’s First AI Scaling Hub With $17.5 Million Funding Boost

Trending

Business

Fitch Solutions Revises Ghana’s 2025 Growth Forecast Upwards to 4.9% on Easing Inflation and Stronger Cedi

October 20, 2025

Fitch Solutions Revises Ghana’s 2025 Growth Forecast Upwards to 4.9% on Easing Inflation and Stronger Cedi UK-based...

Nigeria, Kenya Follow Ghana’s Trailblazing GoldBod to Strengthen Economies

October 20, 2025

Morocco Crowned World Champions at the FIFA U-20 World Cup

October 20, 2025

GPL: Gold Stars Seek Redemption, Eleven Wonders Hunt First Win in Super Monday Doubleheader

October 20, 2025

OMCs Begin Over 4% Fuel Price Reductions Amid Cedi Gains and Decline in Global Oil Prices

October 20, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.