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[BUSINESS] · Uganda · 2 sources

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Part of situation: Uganda shilling depreciation and monetary response (3 clusters)

Bank of Uganda raises reserve requirements to stabilize Shilling

Uganda Shilling Bank of Uganda exchange rate Cash Reserve Requirement currency depreciation

The Bank of Uganda has implemented a policy shift to stabilize the Uganda Shilling, which has recently depreciated to approximately Shs3,930 per US dollar. This decline, driven by fluctuations in global oil prices, represents a nearly 6% slide over the past month.

To combat currency volatility and curb the demand for US dollars, the central bank has raised the Cash Reserve Requirement (CRR) for commercial banks to 13.5%. This measure requires banks to hold 13,500 Shillings for every 100,000 Shillings deposited, effectively reducing the amount of local currency available for lending or foreign exchange trading.

Bank of Uganda Governor Dr. Michael Atingi-Ego assured the financial sector during the Annual Bankers Conference 2026 that the institution has the capacity to stabilize the exchange rate. He noted that the central bank has successfully navigated similar periods of pressure in 2022, 2023, and early 2024.

Entities

Bank of Uganda · Michael Atingi-Ego · Uganda Shilling

Sources

Op-Ed: Taming the Shilling — What Bank of Uganda’s money freeze means for every Ugandan [charmarnews.com]
“We’ve Beaten Shs4,000 Before, We Will Do It Again” - BoU Governor Assures Financial Sector as Shilling Hits Shs3,930 [businessfocus.co.ug]