The sit down strike organised by traders enters day two today with no much done on the side of government.
The traders began the three days strike yesterday demanding that government intervene in having interest rates on loans reduced.
The traders believe the central bank can reduce the central bank rare resulting into reductions by commercial banks.
The traders met the president last evening in an effort to end the strike.
The traders’ spokesman, Issa Ssekitto says they will now call a traders meeting to communicate to them the outcome of the meeting before deciding on what to do next.
Meanwhile, the central bank is advising the public to disregard calls to withdrawal their deposits from banks.
This follows calls by the striking traders under Kampala city traders’ association on their members to withdrawal their money in protest of the high bank interest rates on old loans.
The move has consequently caused worry among the general public with fears of having a situation of a run on the banks, thus increasing their liquidity risk.
Bank of Uganda however explains that all financial institutions have its backing and are therefore safe and strong.
The central bank adds that financial institutions shall remain operational to receive and issue money to clients.
