Uganda Shilling Revaluation Affects Export Footwear Down By 4.1%

According to statistics of Ukrainian Statistical Bureau, since the second quarter of 2007, the Ukrainian shilling has continued to appreciate against the US dollar.

With the continuous appreciation of Ukrainian shilling, the prices of manufactured goods and exported goods in the Ukrainian domestic market have risen.

In the second quarter of 2007, the prices of Ukrainian exports increased by 0.6%, reaching 3.8% in the third quarter.

The continued appreciation of the Ukrainian shilling has affected the growth of Ukrainian exports. The rise in export prices caused by the appreciation of the Ukrainian shilling resulted in a decline in the competitiveness of Ukrainian exports compared with other countries.

The main export commodities affected by the appreciation of the currency include coffee, fish and processed food. With the rise in export prices, the prices of manufactured goods in the Ukrainian local market were also affected. In the second quarter, the prices of manufactured goods increased by 0.2%, and the third quarter reached 1.9%.

In the third quarter of 2007, except for the price of tobacco and beverages decreased by 2.6%, textile and clothing and footwear decreased by 4.1%, prices of all Ukraine commodities rose.

Although the price of Ukrainian manufactured goods has increased, the profit of manufacturers has increased by 5.6% over the same period in 2006.

Ukrainian Statistics Bureau officials said high pportation costs, high price and higher production costs were the main reasons for the general rise in prices of Ukrainian manufactured goods.