Uganda and Tanzania currencies are the best performing media of exchange in East Africa against the dollar, whereas Kenyan and Rwandan currencies continue to lose value against the greenback.
According to Bloomberg Refinitiv data, the Uganda shilling continues to hold steady against the dollar followed by the Tanzanian currency at 2.45 percent and 0.76 percent, respectively. They are among six African currencies with a positive outlook with the kwacha remaining best performing by end of November, appreciating at 19.64 percent followed by Mozambique’s metical and Angola’s kwanza at second and third respectively.
The Kenya shilling and Rwanda franc were ranked 11th and 12th among top African currencies depreciating at -2.93 percent and -3.48 percent respectively.
Currency policy in most of Africa is characterised as flexible without pegging the currency rate against the dollar.
The Uganda shilling is projected to remain strong to the end of 2021, buoyed by dollar inflows from coffee exports and foreign investors chasing yields.
Uganda is Africa’s biggest coffee exporter and shipments climbed to a record level in June on better yield from new trees, favourable weather and improved prices, according to the Uganda Coffee Development Authority.