Shilling Hovers Near Shs4,000 Against Dollar

What the report says

Uganda’s shilling is trading close to the Shs4,000 level against the US dollar, with the local currency facing fresh pressure from stronger demand for foreign exchange. Nile Post reported that the Bank of Uganda said the strain is being driven in part by dollar需求 from sectors such as oil, manufacturing and telecommunications, even as inflows from mining and energy, agricultural exports and remittances continue to offer some support.

On Monday, October 5, 2026, ABC Capital Bank quoted the dollar at Shs3,985 for buying and Shs4,015 for selling, putting the selling rate above the symbolic Shs4,000 threshold. The report also said independent market trackers showed the currency trading around Shs3,987 during the day, underscoring how close the market had moved to that level. The bank noted that its quoted rates were updated on October 5 and could change with market conditions.

The article places the move in a wider context of recent shilling weakness. It said the currency depreciated 3.2 percent year-on-year against the dollar in July 2026, when it averaged Shs3,709.51. A weaker shilling can increase the local cost of imports and other dollar-priced payments, while exporters and recipients of foreign-currency income may benefit when converting earnings into shillings. For businesses and households, the shift highlights the need to watch exchange-rate movements closely.