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2010/11 Balance of Payment to Stay Weak - Central Bank.

The Monitor (Uganda)

| October 27, 2010 | COPYRIGHT 2008 AllAfrica Global Media. (Hide copyright information)Copyright

Byline: Martin Luther Oketch

Bank of Uganda has forecasted a likely weak Balance of Payment throughout the 2010/11 fiscal year due to declining aid inflows and the weakening current account.

Addressing journalists last week, Dr Adam Mugume the BoU director of research, said the weak BoP is a result of low export commodity earning, which has rebounded on the international market as trade returns to pre-crisis levels. The reduced earnings from commodity exports will lead to weak acurrent account, which Dr Mugume said currently stands at 8 per cent of the total GDP excluding grants.

The current account deficit occurs when a country's total imports of goods, …

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