Crane Forex Bureau, the first and oldest forex bureau in Uganda has been struck of the list of registered currency operators by the Central Bank.
Bank of Uganda Governor, Emmanuel Tumusiime Mutebile on Wednesday announced the development in a statement. Others off the list, which means their Licenses have expired, are Karibu and Redfox.
“The public is warned that whoever deals with these with these Forex Bureaus, their proprietors of directors in relation to foreign exchange or money does so at his or her own risk,” read part of the statement.
Bank of Uganda didn’t give a reason for not renewing the licences of the three Forex Bureaus.
Just three months ago, BOU transferred the assets of Sudhir Ruparelia’s Crane Bank to DFCU Bank, one of its key units Crane Forex Bureau despite the tycoon trying to get new investors to recapitalize his bank.
BOU transferred the liabilities (incl deposits) of Crane Bank to DFCU Bank in January 2017, and in consideration of that transfer of liabilities, conveyed to DFCU bank, all Crane Bank’s assets.”
Meanwhile, Uganda’s economy is likely to grow below earlier government projections.
While releasing the April Monetary Policy Statement, Mutebile said the 2016-2017 growth rates will be way below the projected 4.5%.
He attributes this to the contraction in growth in the agriculture sector by 2% in four consecutive quarters, yet it contributes 22% to the National Gross Domestic Product.
He however expresses hope that in the near future, the economy will recover, if effects of calamities like drought are addresses.
The Bank of Uganda has consequently reduced Central Bank Rate by 0.5% to 11% this month to encounter core inflation rate which stands at 4.8%.
