Should a more generalised slowdown transpire, we could see a decline in commodity prices as well. The low interest rate environment in the advanced economies has resulted in elevated levels of capital flows to emerging markets, in search of higher yields, with consequences for both the level and volatility of the rand exchange rate.
I therefore thank the German government for the continued support to Uganda in many aspects, but particularly, the support through KfW and GIZ which is geared towards developing the financial sector in Uganda. I wish to highlight the fact that the Bank of Uganda is cognizant of the challenges in the financial sector and is taking several steps to address them.