Saturday, January 10, 2015

Why is the price of fuel in #Uganda not falling

Some ‪#‎Ugandans‬ have been asking about why the fuel prices in Uganda are not falling like in the rest of the world. Some of you forget that you crashed the shilling. I will now include financial information in what I post. Here you go.
The S&P closed on Friday at 2045 after dropping 0.84%. This may not sound like a big thing but we had good employment data coming out in the week so it should not have closed in the negative.
The DOW closed at 17,377 after dropping some 0.95%.
The Nasdaq closed at 4,074 after dropping some 0.68%
The FTSE closed at 6,501 after dropping a whole 1.05%
The DAX closed at 9,649 after dropping a whooping 1.92%
Paris also showed the pain. The SBF closed at 3,300 after losing 1.61%.
The price of Oil went down to $48.21 a barrel. Remember sometimes in the past a barrel even teased $150.
Uganda is facing a debt repayment problem because banking on Oil while ignoring food is a big mistake.
Ugandan shilling weakens on strong dollar demand by banks
1 US Dollar equals
2853.00 Ugandan Shilling
1 Canadian Dollar equals
2413.14 Ugandan Shilling
Your shilling is dropping like a hot potato and will not get any better as long as you keep circulating more of your currency. You are basically devaluing your currency. All your exports will continue to be very expensive. The above numbers are based on Friday's trading. Naturally the exchange rates will vary as the banks have to make some money too.

Martha Leah Zesaguli (Nangalama)
Born and Raised in Uganda 

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