IMF says Uganda’s foreign reserves will decline

The International Monetary Fund (IMF) has said that Uganda’s foreign exchange reserves will decline without external help.

In a statement issued on Friday, IMF said that the reserves will fall to under two months of import cover in 2020/21 and leave the country in a vulnerable position.

“Absent external support, the expected deterioration in the current, capital and financial accounts would result in a sharp decline of the Bank of Uganda’s (BoU) reserve buffer,” the IMF said.

“This would be below the adequate level of reserves for Uganda, and would leave the country in a vulnerable position,” it added.