Uganda sees
headline inflation staying below 10 percent provided international oil
prices hold near current levels and the shilling does not weaken any
more, a senior central bank official said at the weekend.
Louis Kasekende,
deputy governor, Bank of Uganda, also told a press conference that the
shilling currency was undervalued but the bank had no intention of
dipping into its foreign exchange reserves to strengthen it.
“Now are we going to use reserves to bring it back to levels below
2,400? No, we’ll not use our reserves to fight the current levels to
bring it down to lower (stronger) levels because we believe it is
undervalued,” he said. “We won’t do that. But if there are day-to-day
movements that worry us, we shall definitely use the reserves.”
