Uganda’s economy has received a major vote of confidence, with the Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, declaring that the Ugandan shilling remains the most stable currency in Africa.
Speaking on NBS Television’s “Topical Discussion” program, Ggoobi said the shilling’s resilience reflects sound fiscal discipline, prudent monetary policy, and growing investor confidence in the Ugandan economy.
“The Ugandan shilling is currently the most stable currency in Africa. This stability is not by accident but a result of deliberate, well-coordinated economic management,” Ggoobi said.
He noted that the shilling has remained steady despite global and regional pressures. Last week, commercial banks quoted the exchange rate at around Shs 3,631–3,641 per US dollar, virtually unchanged from the previous week — a sign of limited volatility in the foreign exchange market.
By contrast, Ggoobi pointed out that several regional and continental peers have experienced sharper currency swings. The Kenyan shilling, Ghanaian cedi, and Zambian kwacha have all come under strain due to strong dollar demand, inflationary pressures, and external liquidity constraints.
While acknowledging that “stable” does not necessarily mean “strong” in absolute value terms, Ggoobi emphasized that Uganda’s shilling has demonstrated predictability and low volatility, key indicators of macroeconomic stability.
“A stable currency doesn’t have to be the strongest in value; it means it behaves predictably and is not subject to wild fluctuations,” he explained.
Economists say Uganda’s exchange rate stability stems from consistent coordination between the Ministry of Finance, Planning and Economic Development and the Bank of Uganda, particularly in managing inflation, public debt, and foreign reserves.
Uganda’s fiscal authorities have also maintained a cautious approach to external borrowing, helping the country withstand shocks that have destabilized other African currencies.
Ggoobi’s remarks come at a time when several African economies are grappling with the aftershocks of global inflation, rising interest rates, and capital flight, which have fueled exchange rate volatility. Uganda’s relative calm in the forex market, analysts say, underlines investor trust and effective policy management.
