The Ugandan shilling responded favourably to last week’s Constitutional Court ruling striking down the country’s Anti-Homosexuality Act.
The law, which was signed by President Museveni in February, was condemned internationally and led to limited aid cuts and some sanctions by the US. It was declared invalid on Friday because it had been passed without a quorum of MPs by Parliament in December last year.
Reuters reported on Monday that the currency – which took a knock after the act was signed – had gained 0.3 percent in value on Friday and was expected to continue to strengthen on the back of the court ruling.
“The outlook still favours the shilling after the court decision on the anti-gay law,” said Centenary Bank trader Sage Daniel Muganza
While the law’s author, David Bahati, claimed that the government would appeal the court’s ruling in the Supreme Court, Museveni has refused to confirm if his administration will indeed challenge the decision.
According to report by the Red Pepper tabloid, known for its anti-gay sensationalism, Museveni told reporters that he plans to discuss the issue at a caucus of the NRM ruling party before making a decision.
Meanwhile, UN Secretary-General Ban Ki-moon said that he welcomed the decision by the Constitutional Court, describing it as “a victory for the rule of law.”
The Secretary-General called for “further efforts to decriminalise same-sex relationships and address the stigma and discrimination that persist in Uganda against lesbian, gay, bisexual and transgender persons.”
Museveni and his government’s silence on the court ruling comes as he attends the US-Africa Summit in Washington DC.