Uganda, Jan. 14 -- The Central Bank has said the exchange rate is still stable, with the shilling gaining by 1.6 percent in the three months to December 2022, supported by the prudent monetary policy and the recent declines in the global crude oil prices.

The two developments, which somewhat eased the pressure on the deteriorating terms of trade, increased personal remittances, and foreign direct investment inflows to the oil sector.

However, the Central Bank explains that short-term capital flight from the domestic debt market that was triggered by investor nervousness over the sanctions on Russia and aggressive monetary tightening to curtail surging inflation in advanced economies weakened the shilling during the second and third quar...