UGANDAN CURRENCY SHAKY AFTER NEW AID CUT

The Ugandan currency had taken a new knock following another nation cutting aid because of the country’s anti-gay law.

On Wednesday, Sweden announced it was joining the World Bank, Norway and Denmark in suspending or redirecting aid to the country in response to the oppressive law’s recent enactment.

“Swedish aid is not unconditional,” noted Swedish Minister for International Development Co-operation, Hillevi Engström, in a statement.

“The Government is therefore now choosing to suspend government-to-government payments still due under our current strategy for Uganda, with the exception of research co-operation,” she said.

The country will suspend around $1 million in aid to the Ugandan government. The news forced Uganda’s central bank to once again prop up the shilling after it began to drop.

Last week the currency fell almost 3% after President Museveni signed the Anti-Homosexuality Act.

Bloomberg stated that “the gains that made Uganda’s shilling the second-best-performing currency in Africa this year are evaporating…”

According to Reuters, around 20% of Uganda’s budget is sourced from international donors.

Ugandan LGBTI activists say they don’t support general aid cuts, but will back targeted cuts to government departments, such as the Justice Ministry, that have backed the law or will enforce it.