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Uganda had a fixed exchange rate to USD during the Amin years, and it was the central bank's job to maintain the market exchange rate
Uganda had a fixed exchange rate to USD during the Amin years, and it was the central bank's job to maintain the market exchange rate at the official parity. Uganda's central bank was intervening in the foreign exchange market for much of the 1970s. In some years it was trying to support the shilling, in other years it was trying to weaken the shilling. a. Identify and explain which chart(s) reveal(s) that the central bank intervened actively during Admin's dictatorship. . Identify the years between 1970 and 1. Real GDP Growth (%) 250 2. Inflation and Money Growth 15 1980 during which the central bank apparently tried to support the value of the 150 -MZ Growth Ugandan shilling. Identify the years during which it apparently tried to weaken the shilling. Explain your reasoning. 3, Government Deficit / GDP (x) 4. Inflation and Velocity 5. Currency Preference & Bank Reserve Ratio 6. M and H: Growth Rates (%] 1.0 100 -M Growth 0.8 -H Growth 0.5 -CU/D 50 -BA/D 0.3 25 0.0 7. Government Deficit and the Rise in H, Real (1970 Shillings mms) . Money and H: Levels [Index, 1970-160) -Real Deficit -Money -Real Change in H 1000 100 9. Exchange Rate Shillings/USD 10. Foreign Reserves 1.3 [USD Mns) 1.0 0.8 0.3 O 10 11. External Debt 12. Central Bank Holdings of Government Debt (USD Mins) (Stock, Shillings mins) 800 600
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