UGANDA · CURRENCY
Key Facts
- —The country Uganda is a landlocked East African country of more than 45 million people, led since 1986 by President Yoweri Museveni.
- —What happened On Friday 23 October 2026 the Ugandan shilling briefly touched about 4,500 to the US dollar, its weakest level in 33 years, before recovering to 4,404 by midday.
- —The slide The shilling first broke through 4,000 to the dollar on Monday 5 October and has lost more than 10% since late August.
- —The Treasury view Ramathan Ggoobi, the top civil servant at the Finance Ministry, said in remarks reported on 22 October that Uganda should not spend its reserves to defend the shilling.
- —The central bank The Bank of Uganda raised its policy rate from 9.75% to 12% on Wednesday 14 October and has sold dollars on the market, though it has not disclosed the amounts.
- —The reserves The latest published figure puts Uganda’s foreign exchange reserves at US$6.7 billion at the end of June, enough for 3.7 months of imports.
- —Still open How much of its reserves the Bank of Uganda is spending, and whether the shilling can hold above 4,400 next week.
The Uganda shilling hit a 33-year low on Friday 23 October 2026, briefly touching about 4,500 to the US dollar, the Daily Monitor reported. By midday it had recovered to 4,404, according to Bank of Uganda counter rates.
The fall has opened a debate over whether the central bank should sell foreign exchange reserves to stop it. Ramathan Ggoobi, the Finance Ministry’s top official, has argued against it, which matters to American investors in Ugandan bonds.
The Day the Shilling Touched 4,500
Early on Friday 23 October the Uganda shilling touched the 4,500 region against the dollar, its weakest in 33 years, the Daily Monitor reported. A reading of 4,500 shillings per dollar means one US dollar now buys 12.5% more shillings than it did at the 4,000 mark.
By midday the currency had pulled back to 4,404 on Bank of Uganda counter rates, the same report said. On Thursday 22 October the central bank’s mid-rate closed at 4,301.90, up from 4,208.10 the day before, UgBusiness reported.
How the Slide Built Since August
The shilling closed above 4,000 to the dollar for the first time on Monday 5 October. By 13 October it had reached 4,143, its weakest since at least 1993, Pulse Uganda reported.
The Uganda shilling has lost over 10% since 25 August, the worst of 144 currencies Bloomberg tracked in October, the Daily Monitor said. Citigroup estimated that about US$200 million left Uganda’s markets in two weeks.
What Ggoobi Told the Central Bank
Ramathan Ggoobi is the permanent secretary of the Finance Ministry and Secretary to the Treasury, the top civil servant for the national budget. In remarks that Nile Post reported on Thursday 22 October, he said Uganda should not spend its reserves to fight speculation against the shilling.
The ministry said on Twitter that he had urged the Bank of Uganda not to “donate our reserves to speculators,” according to UgBusiness. President Yoweri Museveni has also said publicly that he does not agree with selling dollars to push the rate down, calling it “not correct.”
Why the Uganda Shilling Is Under Pressure
Ggoobi blamed the Middle East war, which pushed oil to about US$100 a barrel and raised fuel, transport and import bills. He also cited a quarter-point rise in the US policy rate, which pulls investors toward American securities.
Ggoobi also named weaker tourism income, which he tied partly to the Ebola threat, and changes in coffee and cocoa export prices. Pulse Uganda reported that goods imports hit US$2.31 billion in August, up 66.5% from a year earlier.
What the Bank of Uganda Did for the Shilling
The Bank of Uganda, led by Governor Michael Atingi-Ego, raised its policy rate to 12% from 9.75% at an emergency meeting on 14 October. It had already lifted the cash reserve requirement for commercial banks from 11% to 13.5%, effective 24 September.
The Daily Monitor reported a US$30 million sale on 14 October, the first since June 2022, but UgBusiness said the bank has not confirmed it. The bank sold currency again on 22 October without disclosing the amount.
Why the Reserves Argument Matters for the Shilling
Reserves are the dollars a central bank holds to pay for imports and debt. The latest published figure is US$6.7 billion at the end of June, or 3.7 months of import cover.
Selling reserves can slow a fall but leaves less cushion if oil keeps climbing. Ggoobi said spending was cut by nearly 3 trillion shillings (US$680 million at 4,404 per dollar, or US$720 million at 4,166).
What It Means for US Readers
American investors in Ugandan government bonds lose in dollar terms when the Uganda shilling falls. Dollar-based firms and aid groups in Kampala see local costs fall, while imported fuel and machinery cost more.
Visitors paying in dollars get more for their money. The Rio Times covered the shilling’s 6% slide in September and the rate rise to 12% on 14 October.
What Is Not Known
The Bank of Uganda has not said how many dollars it has sold since the emergency meeting, so the hit to reserves is open. The latest published reserves figure dates from the end of June, before most of the slide.
It is also open whether the Uganda shilling will steady if the government cuts imports or lifts export earnings, as President Museveni has urged. Nobody has said whether foreign bond investors have finished selling.
More: Uganda news in English, every day from The Rio Times.
Frequently Asked Questions
How weak is the Uganda shilling now?
The Uganda shilling touched about 4,500 to the US dollar on Friday 23 October, its weakest in 33 years. By midday it had recovered to 4,404 on Bank of Uganda counter rates.
Who is Ramathan Ggoobi?
Ggoobi is the permanent secretary of Uganda’s Finance Ministry and Secretary to the Treasury. He is the top civil servant on the national budget and advises the government on money matters.
Why does Ggoobi oppose using reserves?
He said in remarks reported on 22 October that Uganda should not spend its foreign exchange reserves to defend the shilling against speculators. He backs tight monetary policy and spending cuts instead.
Why is the Uganda shilling falling?
Ggoobi blames higher oil prices, a higher US interest rate and weaker tourism income, while Citigroup points to foreign investors selling local bonds. Imports of goods jumped 66.5% in August from a year earlier, Pulse Uganda reported.
What has the Bank of Uganda done about it?
It raised its policy rate from 9.75% to 12% on 14 October and has sold dollars to support the Uganda shilling. It had already lifted the cash reserve requirement for banks to 13.5% in September.
Sources: Daily Monitor, Shilling touches Shs4,500, weakest in 33 years, 23 October 2026; Nile Post, PS Ggoobi Warns Against Using Reserves to Fight Shilling Speculation, 22 October 2026; UgBusiness, BoU turns to dollar sales as political warnings meet market pressure, 23 October 2026; Daily Monitor, BoU sells dollars to halt shilling slide as emergency rate hike bites, 16 October 2026; Pulse Uganda, Uganda Shilling Drops to 33-Year Low Against US Dollar, 13 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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