The Governor of the Bank of Uganda (BoU), Dr Michael Atingi-Ego, has revealed that the central bank’s latest auction has attracted offshore investors who had previously withdrawn from Uganda’s securities market, contributing to the appreciation of the shilling against the US dollar.
Appearing before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), chaired by Nkunyingi Muwada, Atingi-Ego said the recent interventions to stabilise the shilling must be complemented by deliberate efforts to strengthen domestic production and exports.
He said promoting value addition to locally produced raw materials and prioritising exports over imports would help sustain the gains registered in the foreign exchange market and strengthen the economy.
The central bank governor also urged legislators to push government towards implementing the country’s 10-fold growth strategy, which focuses on expanding economic production through value addition, industrialisation and increased competitiveness.
Atingi-Ego cautioned, however, that the Bank of Uganda’s interventions to stabilise the shilling are largely short-term measures and cannot provide a sustainable solution without corresponding improvements in the productive sectors of the economy.
He further pointed to the increase in the Cash Reserve Ratio (CRR) from 11 per cent to 13 per cent as part of the monetary interventions, explaining that the ratio represents the minimum proportion of commercial banks’ total customer deposits and liabilities that must be maintained as liquid reserves at the central bank.
He emphasised the importance of combining monetary policy measures with long-term economic reforms to strengthen Uganda’s productive capacity, boost exports and reduce dependence on imports.
By Charles Katabalwa
10th Nov 2026
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