The Rehabilitation of the Economy of Uganda

A Report by a Commonwealth Team of Experts, Volume 2

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Foreign Exchange Policy

It is impossible to consider the issues surrounding foreign exchange and exchange rate policy without placing them in the context of overall policy objectives and constraints. The economy of Uganda is at present afflicted with a severe shortage of imported goods and services: agricultural and industrial inputs, spare parts, essential consumer goods, machinery and equipment. This shortage has not only caused vast underutilisation of productive capacity but has also generated high prices, together with the dissatisfaction and low labour productivity associated with the lowered real incomes.


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