Uganda - Second Review Under the Policy Support Instrument and Request for Waiver of Assessment Criteria - Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; And Statement by the Executive Director for Uganda. (Electronic book text)

1. After several years of high growth and strong macroeconomic performance, the global financial crisis is now constraining economic activity in Uganda. Trade flows, remittances, official project aid, and portfolio inflows have weakened, especially during the last quarter of 2008; tax revenue collections have underperformed; and bank liquidity has tightened, pushing up domestic interest rates. Reflecting the reduced foreign exchange inflows, the shilling/dollar exchange rate has depreciated by about 30 percent since October. Nonetheless, international reserves have remained at a comfortable level (about 5 months of imports).