Business 9 October 2026 Daily Monitor (Uganda)
Museveni rejects Bank of Uganda's plan to use reserves to strengthen the Shilling
President Yoweri Museveni has vetoed a proposal by the Bank of Uganda to deplete foreign exchange reserves to support the weakening Ugandan Shilling. He believes a weaker currency benefits local exporters and that interventions would be counterproductive. Source: https://www.monitor.co.ug/uganda/news/national/museveni-rejects-bou-proposal-to-deploy-foreign-reserves-to-save-shilling-5625570
President Yoweri Museveni has publicly opposed a proposal from the Bank of Uganda (BoU) to utilize the nation’s foreign exchange reserves in an attempt to stabilize the Ugandan Shilling. The central bank had suggested drawing from the country’s approximately $6 billion reserves to inject dollars into the market, aiming to reduce demand and bolster the Shilling’s value against the US Dollar.
During national Independence Day celebrations, President Museveni declared his strong disapproval of the plan, stating, “I am totally against the Governor Bank of Uganda’s proposal to squander our reserves and deploy more dollars in the market to counter the falling shilling.” He articulated that such a move would be “not good” and specifically mentioned targeting imports deemed unnecessary.
The President’s directive comes at a time when the Shilling has experienced a significant depreciation, trading at approximately Shs4,011 to the US Dollar, a notable increase from Shs3,700 in late September. Despite the economic pressure, Museveni argued that a weaker Shilling provides an advantage to Ugandan exporters, enabling them to earn more shillings for their dollar-denominated earnings.
Museveni also addressed the surge in fuel prices, attributing it to global factors such as geopolitical conflicts, shifts in capital flows, and opportunistic investor behavior. He assured Ugandans that measures are being taken to return the economic situation to normalcy. The President highlighted the nation’s economic growth since 1986, noting the expansion of GDP and reaffirming the government’s long-term economic strategy.