"Following the pronouncement by the World Bank regarding new financing as a result of the Anti-Homosexuality Act, that they wouldn't be funding any new loans in Uganda, that had an impact on the exchange rate. We saw the exchange rate depreciating from about 3650 to nearly 3750 in a period of two days," said Michael Atingi-Ego, Deputy Governor Bank of Uganda.
In August of this year, the World Bank Group announced a pause in public financing to Uganda in response to the country's adoption of the Anti-Homosexuality law.The World Bank stated that Uganda's Anti-Homosexuality Act fundamentally contradicts the group's values, and as a result, no new public financing would be presented to its board of executive directors until the effectiveness of additional measures has been assessed.
The decision by the World Bank aims to protect sexual and gender minority groups from the discriminatory effects of the law, which has faced criticism from human rights groups and the West. The lender also mentioned that it would enhance third-party monitoring and grievance redress mechanisms to take corrective action as necessary.