Bank of Uganda Launches New FX Swap Curve to Improve Foreign Currency Pricing

What the report says

The Bank of Uganda has launched a new market reference tool, the Uganda Foreign Exchange (FX) Swap Curve, aimed at improving transparency in the pricing of foreign currency funding and helping traders and lenders better assess FX market rates. According to SoftPower News, the central bank said the benchmark is intended to support price discovery in Uganda’s foreign exchange market.

The publication says the curve is now being published for the first time, marking a new step in how the central bank supports market information for foreign exchange activity. FX swap curves are commonly used in financial markets to show the implied cost of borrowing one currency and exchanging it for another over a set period. In general terms, such benchmarks can help participants compare pricing more consistently, though the specific methodology and usage details were not included in the supplied text.

The move matters because clearer pricing benchmarks can reduce uncertainty for banks, businesses and other market users that rely on foreign currency funding or hedging. It also fits into broader efforts by central banks to improve market transparency and deepen financial market infrastructure, although that wider context is general background rather than a specific claim in the source.