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As Anti-Gay Law Affects Shilling, Uganda’s Central Bank sells Foreign Currency

As Anti-Gay Law Affects Shilling, Uganda’s Central Bank sells Foreign Currency

Uganda is seeing strong backlash from it’s recently enacted anti-gay gay law.

“Uganda’s central bank has intervened to support the shilling which weakened since donors withheld aid over an anti-gay law,” reports CNBC Africa.

The central bank is now selling foreign currency after the World Bank took the unusual step of spostponing a $90 million loan for over the law. Traders said the central bank sold dollars.

“This so-called ‘cut’ is attempted blackmail to set Ugandans against their govt #anti-gay law popular back here,” Ugandan government spokesman Ofwono Opondo wrote on Twitter about the World Bank’s move. He said Uganda could live without the aid.

Also, Denmark and Norway have withheld aidç other countries are reviewing ties, including the United States, Kampala’s biggest donor which gives more than $400 million annually.

“It will be difficult to continue the government-to-government support,” said Swedish minister Anders Borg.

“This is Swedish tax payer money. We are sending it to a country pretty far away and people will say why should we support a government that is harassing people in this manner,” Borg told reporters.