As the dollar strengthens and the Uganda shilling plummets, who’s losing out?

Money changers are trying to ride today’s financial storm.
Emma Nkurunziza, a money changer in Nyabugogo Taxi Park, says that some money changers are making profits from fluctuating exchange rates.

"I had a lot of Rwandan francs and it was a blessing to me that Ugandan money lost value, as I bought more Ugandan shillings at a lower price.”

Nkurunziza says that he will keep the Ugandan money bought and wait until it gains value again. However, he says that those who had a lot of Ugandan money suffered a great loss when the shilling lost value.

"I had some Ugandan currency but I can’t say that I made losses. The gains I made out of the dollar that appreciated and Francs that remained stable compensated the loss I made in shillings.”

Mukama Habibu, also a money changer in Nyabugogo, says that almost all the currencies he had lost value starting with the Euro, the South African rand, the Kenyan shilling and the Ugandan shillings.

"We are buying Ugandan shilling at Frw0.28 while selling it at Frw0.29 when in the last three weeks we were buying the same shilling at Frw0.32 and selling it at Frw0.34.” A euro is being bought at Frw650 and being sold at Frw700 when originally a euro was being sold at Frw840.

"I am now only buying dollars as other currencies have lost value. I can’t buy what is not on market,” says Mukama.

Meanwhile, a lot of people are buying dollars from here in Kigali and taking them to Kampala where the dollar is in high demand and highly valued.   

Mukiza Pracide, a businessman dealing in new clothes, says that he has benefited a lot from this sudden rise in the value of dollar in Kampala.

"Whoever had kept dollars is so happy that he will get a lot from it given the fact that it has gained value. If you were buying 10 items in Uganda with $100, today it’s possible that you will buy 12 items with the same amount.”

However he reveals that traders who have been coming to buy goods from Rwanda with Ugandan currency have suffered losses.

"They have found goods expensive with the little francs they get for their shillings. Some they have decided to stop business till shillings gain value again.”

Ends