Uganda ranks 1st in access to foreign exchange in East Africa: survey

Source: Xinhua| 2020-01-29 10:59:07|Editor: Shi Yinglun
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KAMPALA, Jan. 28 (Xinhua) -- Uganda led East African countries in access to foreign exchange market, a new financial report showed Tuesday.

Among 20 countries surveyed in Absa Africa Financial Market Index 2019, Uganda scored 70 out of 100 points in access to foreign exchange market, followed by Rwanda scoring 66, Kenya 65 and Tanzania 60. Burundi is not among the countries in the survey.

The index evaluates countries based on six pillars, namely, market depth, access to foreign exchange, tax and regulatory environment and market transparency, capacity of local investors, macroeconomic opportunity, as well as legality and enforceability of standard financial markets master agreements.

"Uganda performs strongly in this pillar. It has a high level of foreign reserves relative to net portfolio investment flows and enough reserves to cover more than four months of imports," said Absa chief economist Jeff Gable.

The index evaluates financial market development in 20 African countries and highlights economies with the clearest growth prospects, with the aim of showing how economies can improve market frameworks to meet yardsticks for investor access and sustainable growth.