Deputy Minister for Finance and Planning Dr Ashatu Kijaji told the National Assembly that control of inflation rates was also among the reason for Shilling stabilization.
She was responding to a question from Tumbatu MP (CCM) Juma Othman Hija who sought to know over the strategies taken by the government to control shilling fall against other currencies.
“The Shilling value dropped by 2 per cent in the year 2017/18 and 2016/17 compared to the fall of 22 per cent in 2015/16. So in the last fiscal year, the Shilling remained relatively stable compared with the franc of Rwanda which fell by 5 percent and Ugandan shilling by 3.8 per cent,” Dr Kijaji explained.
According to her, in maintaining the shilling stability, the government was taking a number of initiatives including promoting the increase of local production of goods and services as well as increasing exports, among others.“Controlling the bureau exchange business is also a key initiative taken by the government to ensure that our shilling remains stable,” she added.