KAVUMA DARIUS

Finance guy

[Arsenal @Arsenal]

Bukayo. Big Gabi. Champions.

[KNIGHTS 👑 @Knights_17_]

We are proud to announce our partnership with Nzonzi Coffee for #TSL8🤝🏾

#COYK⚔️

[Arsenal @Arsenal]

It was only ever Arsenal.

A boyhood Gooner, our new number 10 – welcome home, Ebere ❤️

[Alexander McKenzie @mr_got_it_on]

Best in the business

[KAVUMA DARIUS @kavumaDarius]

@elonmusk Bro the ultimate test are the Kampala roads 😂

[Happy Punch @HappyPunch]

Cageside angle of Francis Ngannou’s knockout over Renan Ferreira is brutal 😳

[P R E C I O U S :) @Preciouslyxo]

home! 💙

[KNIGHTS 👑 @Knights_17_]

BACK TO BACK WINS WITH CLEAN SHEETS🥳🤍
#TSL7

[Beewol @beewol]

We've seen the truckloads of soldiers. We've seen the heavy police deployment. We've seen the intense army rounds. We've seen it all. But we shall not be deterred. We still maintain that we are peaceful. If you want to kill us, please do. But we are unfazed! #March2Parliament

[Kakande Alex @KakandeAlex]

Bank of Uganda hikes the CBR to 10.25%.
The Borrower's dilemma.

To what extent will the aggressive tightening of the monetary policy help address the UGX/USD FX Challenges and slow down inflation?

Yesterday, the Bank of Uganda announced an increase in the Central Bank Rate (CBR) to 10.25%. This surge will subsequently result in the Bank Rate climbing to around 14.25% - the second monthly rise in a row. The bank's tactics to control inflation while stabilizing the suddenly depreciating Ugandan Shilling against the US Dollar are evident.

Two years ago, in April 2022, the CBR stood at 6.5%, with the Bank Rate around 10.5%. This indicates an increment of over 57% in the CBR within 24 months, signifying the highest rate since May 2017 - a peak unseen in over six years.

This rate increase adversely impacts borrowers from commercial banks who can expect lending rates to escalate. For instance, in March 2024, when the Bank of Uganda declared an increase from 9.5% to 10% (50 basis point), the average prime lending rate rose from 17.32% to roughly 18.09% (77 Basis points), raising the question of what the lending rate will be at the end of April 2024, moving into May 2024.

For those already with floating interest rate bank loans, you may soon receive a notice from your bank repricing your outstanding amount and potentially updating your payment amount for each term.

The growing concern is how businesses can sustain themselves in an environment where credit capital is escalating to as high as 20%.

If borrowing isn't urgently required or an absolute necessity, my advice would be to delay that borrowing plan until the economy eases up.

At the same time, this period, which is likely to result in costly borrowing, demands a revisit to your saving strategies. Particularly for those who are storing money in a bank account that yields merely 2%-3%. Notice the widening gap between the prime lending rates for commercial banks' loans versus the interest on deposit received from your savings. It's a perfect time to ensure that your money is working for you, not merely remaining idle, especially in these challenging times.

Bank of Uganda’s communication.

[Kakande Alex @KakandeAlex]

Treasury bills 🚨

@BOU_Official will be Auctioning off Treasury bills on Wednesday August 16, 2023.

Send in your auction instructions to your Commercial Bank.

Invest in Treasury bills and bonds as much as you can.

What are you waiting to open up that CSD Account?

[Uganda Revenue Authority @URAuganda]

This is a 𝐡𝐮𝐦𝐛𝐥𝐞 𝐫𝐞𝐦𝐢𝐧𝐝𝐞𝐫 about your obligations as a taxpayer before 30/June/2023!!!

And also...let us know if you need an interpreter in this #URATickTock season. #TaxFraudAlertUG

[Nicholas @NicholasPas5]

The only??

[Arsenal @Arsenal]

THIS TEAM ❤️

[Pope Francis – ARCHIVE @Pontifex266Arch]

Hope would have us recognize that there is always a way out, that we can always redirect our steps, that we can always do something to solve our problems. #SeasonofCreation #LaudatoSi’

[Richard Feynman @RobotFeynman]

@PhysInHistory The task is, not so much to see what no one has yet seen;
But to think what nobody has yet thought,
about which everybody sees.

[Erwin Schrodinger]

Living is worthwhile if one can contribute in some small way to this endless chain of progress.

[Paul Dirac] via @Robot_Feynman