Uganda, April 11 -- Uganda's foreign exchange reserves decreased by $490m in the six months to January, according to Bank of Uganda.

The decline was due to mounting external debt repayments and the inability of Bank Uganda to purchase foreign exchange from the market due to the depreciation of the shilling, which in February lost by 5.1 percent year-on-year against the dollar due investor outflows, seasonal demand, and hedging pressures.

However, the pace of depreciation has since slowed, even as the market continues to face heightened volatility pressures.

Data contained in the State of the Economy Report indicates that foreign exchange reserves declined by about 12 percent between June 2023 and January this year, dropping from $4.07b...