Shilling strengthens as offshore investors return to Uganda’s securities market

What the report says

Bank of Uganda Governor Dr. Michael Atingi-Ego told Parliament that the Uganda shilling has recently strengthened against the US dollar after offshore investors returned to the government securities market. He said the renewed interest was linked to higher yields, which made Ugandan securities more attractive and brought fresh foreign currency inflows into the market. The remarks were made on Tuesday, November 10, 2026, during an appearance before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE).

Atingi-Ego said the shilling had come under pressure earlier because a recent US Federal Reserve rate increase made dollar assets more appealing, prompting some non-resident investors to sell Ugandan securities and buy dollars. He told MPs that the currency had weakened to nearly Shs4,500 before central bank measures helped ease the pressure. Those measures included raising the Cash Reserve Ratio and increasing the Central Bank Rate in October, steps he said tightened liquidity and improved the relative attractiveness of government paper.

According to the governor, a recent government securities auction offered Shs1.4 trillion and drew more than Shs200 billion from offshore players, helping lift the shilling to about Shs4,050. He cautioned, however, that monetary policy alone cannot solve the country’s wider economic challenges. He urged faster implementation of the government’s Tenfold Growth Strategy, especially sectors such as agro-industrialisation, tourism, mineral development, and science and technology, which he said could support exports and strengthen Uganda’s foreign exchange position.