The government is maintaining tight control over the country’s money supply as part of a broader strategy to keep the economy stable, according to Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi.
Ggoobi explained that the government is “in charge of liquidity levels,” meaning it carefully regulates how much money is circulating in the economy.
The government’s control over the money supply means it carefully decides how much money is circulating in the economy.
By doing this, it prevents situations where too much money chases too few goods, which can drive prices up (inflation), or where too little money slows economic activity.
Essentially, the government is using existing funds—like tax revenues and other financial resources—rather than printing new money, to fund its operations.
This approach helps maintain price stability, protects people’s purchasing power, and keeps the economy growing steadily.
This is a key responsibility because too much money in circulation can lead to inflation—where prices rise and purchasing power falls—while too little can slow economic activity.
He notes that Uganda’s current macroeconomic indicators—such as inflation, growth, and fiscal stability—are strong, and the outlook remains positive.
In other words, the government does not currently see major risks threatening economic stability.
A central part of this approach is avoiding the printing of excess money. Instead of injecting newly created money into the economy, the government relies on existing financial resources—revenues and funds already within the system—to finance its activities.
