The Ministry released an economic report for July, indicating that the Ugandan Shilling had strengthened even further against the dollar.
The Uganda Shilling has continued to strengthen against the United States (US) dollar according to a July 2020 report from the Ministry of Finance Planning and Economic Development.
On Monday, the Ministry released an economic report for July, indicating that the Ugandan Shilling had strengthened even further with an appreciation of 0.9% on account of increased inflows amidst subdued demand.
Statistics from the report also indicated that the shilling traded at an average mid-rate of Shs.3,703.5/ USD during the same month as compared to the Shs.3,737.9/USD that was recorded in June 2020.
According to a statement from the finance ministry, the great economic performance pinpointed in July was justifiable to the fact that government eased lockdown measures earlier which allowed business countrywide to resume normal operations.
Among others, the Ministry also highlighted areas including exports and imports, domestic revenue collections as part of those that Uganda as a country registered success in International trade also improved as reflected by an increase in the value of both exports and imports.
The Export earnings increased for the second consecutive month to US$337.19 million in June 2020 from US$290.93 million in May 2020. The value of imports increased to US$543.6 million in June 2020 from US$435.6 million in May 2020.
Also, the Annual headline inflation rose to 4.7% from 4.1% in June 2020 due to an increase in annual core inflation which rose to 5.8% from 4.9% recorded in June 2020.
Domestic revenue collections amounted to Shs1, 201.52billion against the target of Shs.1, 022.49billion for the month registering surplus of Shs179.03 billion in July 2020.
Meanwhile, for the issue of government expenditure, it amounted to up to Shs.2, 988.50 billion in July about 13.6% lower than what the Ministry projected for the month.
Relatively, in the fiscal sector, the overall fiscal deficit amounted to Shs.1, 723.31 billion in July which was lower than the programmed deficit of Shs 2,289.81 billion.
According to the finance ministry, the lower deficit resulted from the less expenditure that was exhibited during July coupled with higher revenue collections.