Uganda lost USh130 billion (about $34 million) on the public securities market between February 21 and March 13 due to the novel coronavirus still spreading around the world. Figures were reported in a report published on March 24 by the country’s central bank.

The Bank points to a fear sentiment among investors which led to a depreciation of the Uganda Shilling against the US dollar from USh3,676.9 for US$1 in February to USh3,820 for a dollar as of March 20, a depreciation rate of 3.9%.

To remedy this situation, the Central Bank is planning several measures including loosening the monetary policy and providing liquidity in the event of financial strain. According to Adam Mugume, the director for Research at Bank of Uganda, loan maturities will be extended, especially for the most affected sectors.

“We shall provide exceptional liquidity assistance for a period of up to one year to financial institutions supervised by BoU, that may require it, and waive limitations on the restructuring of credit facilities at financial institutions,” Mugume said.

André Chadrak