Uganda's Currency in Circulation Surpasses Shs10 Trillion

The total value of currency circulating within Uganda’s economy has crossed the Shs10 trillion mark, according to the Bank of Uganda’s (BoU) latest annual report. This represents a significant 12% increase, or an additional Shs1.1 trillion, compared to the previous fiscal year’s Shs8.97 trillion.

Bank of Uganda’s executive director of operations, Dr. Jacob Opolot, explained that this rise in physical cash demand remained robust throughout the 2025/26 fiscal year, despite the ongoing expansion of digital payment channels.

He further noted that the stronger growth observed in banknotes, compared to coins, suggests that the increased demand for cash was primarily for higher-value transactions. “The stronger growth in banknotes relative to coins indicates that the increase in cash demand was largely concentrated on higher-value transactions,” Dr. Opolot stated.

During the fiscal year, the BoU issued banknotes valued at Shs14.2 trillion. A notable 67% of this amount consisted of reissued notes, highlighting the effectiveness of the bank’s banknote sorting process in maintaining the circulation of fit currency and reducing the need for new note issuance.

The Bank of Uganda, acting under its constitutional mandate, is the sole authority responsible for issuing currency in the country. This responsibility is managed through its Currency Department, which oversees all aspects of currency production, issuance, distribution, and integrity.

Looking at the broader economy, BoU Governor Dr. Michael Atingi-Ego reported robust economic activity with an estimated growth of 6.4% for the fiscal year. He also highlighted the financial system’s continued safety, soundness, and resilience, with strong capital and liquidity positions maintained by financial institutions.