The Bank of Uganda (BoU) has introduced a new system requiring companies involved in remittance services to report their transaction data weekly.

This initiative aims to improve data collection and analysis of diaspora remittances, a vital and growing financial flow in Uganda.

Under this new approach, all remittance service providers will submit detailed transaction data weekly using a specially designed remittances data collection form.

The system was developed through collaboration between BoU and the International Fund for Agricultural Development (FAD) and is expected to significantly enhance how Uganda monitors and utilizes remittance data.

The rollout of the new data collection template will occur over the next two months, beginning with commercial banks and eventually including local money remittance providers such as forex bureaus.

This development comes at a time when diaspora remittances are steadily increasing, growing at an estimated 11 to 13 percent annually, and reaching approximately 1.42 billion US dollars in the 12 months ending January 2024, according to BoU.

The Central Bank emphasizes that this move is aimed at gaining a comprehensive understanding of remittance flows, which are crucial for economic stability and poverty reduction efforts in Uganda.

By improving data collection, the BoU hopes to better inform policy decisions and support the country’s financial and developmental objectives.

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