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Weakened Ugandan Shilling Worries Business Owners, Gives Exporters Boost

Weakened Ugandan Shilling Worries Business Owners, Gives Exporters Boost

Uganda’s local currency is on a steady decline and officials aren’t guaranteeing that things will get better in the near future. For the country’s traders, fluctuation of the shilling may not be a bad thing, according to a CCTV Africa report. Exporters have room to earn more from boosted prices. However, business owners — whose livelihood is tied in with exchange rates — won’t necessarily be as lucky.

“Most of our transactions aren’t actually based in Uganda Shillings, we to convert them in dollars,” George Luganda, manager at Service and Computer Industries Ltd said. “There’s a cost of money, and there’s money lost in that conversion. Even as we are paying taxes, our taxes are actually based on the dollar exchange rate.”