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Uganda calls for regional efforts to minimize effects of global economic uncertainties

Source: Xinhua| 2019-08-06 02:02:06|Editor: huaxia
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KAMPALA, Aug. 5 (Xinhua) -- Uganda's central bank on Monday called for regional efforts to mitigate the impacts the ongoing global economic uncertainties.

Emmanuel Tumusiime Mutebile, Governor Bank of Uganda, said in a statement issued here that although Uganda's economy remains strong with growth projected at 6.3 percent this financial year 2019/20, the country, like others in the east African region, faces consequences of the fragile international economic environment.

Mutebile, who was speaking at a regional central bank governors meeting in neighboring Rwanda, said the medium- to long-term prospects for the global economy remain uncertain.

He said last week the International Monetary Fund (IMF) reduced its global growth outlook, already the lowest since the financial crisis, to 3.2 percent.

The IMF suggested that policy "missteps" on trade and Brexit could derail a projected rebound.

"The hazy global economic outlook coupled with the continuing uncertainty in global financial markets and financial risks may lead to exchange rate volatility with adverse consequences for investment and growth in our economies," Mutebile said.

"As we deliberate, we need to be aware that these external vulnerabilities, emphasize more than ever, the need for the East African Community to build resilience by strengthening policy co-ordination and intra-regional trade, which I am happy to note, is picking up," he added.

Mutebile said despite delays in achieving targets, significant progress has been toward the operationalization of the East African Monetary Union (EAMU) Protocol.

"We have made strides on harmonization of: monetary policy frameworks, exchange rate policies, rules and practices governing bank supervision, financial accounting principles, payment systems and policies and standards on statistics," he said, adding that a number of national laws are also being harmonized. Enditem

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