Increasing import bill hits foreign exchange reserves : vima

Increasing import bill hits foreign exchange reserves


Increasing import bill hits foreign exchange reserves  
Monday May 24 2021
Demand for imports has been increasing amid low dollar inflows, which has forced the Central Bank to step in. Photo | File
Summary
This was a result of the growing demand for imports amid a slowdown in dollar inflows and low export receipts. 
The drawdown, therefore, resulted into a slight decline in the duration of foreign exchange reserve cover for imports from 4.4 months to 4.3 months.
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Bank of Uganda made a $216.8m drawdown from the reserve account during the quarter ended February to fund a widening deficit resulting from growth in the import bill. 

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