The Ugandan shilling has come under renewed pressure against the US dollar, with the currency weakening by nearly 16% since the beginning of 2026, amid rising external costs and concerns over the country’s foreign-exchange market.
The depreciation has pushed the dollar above Shs4,400 in some market quotations, reversing recent gains and increasing pressure on businesses and households that depend on imported goods, fuel and other dollar-priced commodities.
According to figures circulating on October 23, 2026, official exchange-rate quotations placed the dollar-buying rate between approximately Shs4,298 and Shs4,402. Bloomberg data cited by journalist Canary Mugume also indicated that the shilling had weakened by nearly 16% during the year.
The currency’s depreciation comes as the Bank of Uganda has tightened monetary policy in an attempt to contain inflationary pressures and stabilise the economy.
The central bank raised its Central Bank Rate (CBR) by 2.25 percentage points to 12%, while also increasing the Cash Reserve Requirement for commercial banks. It has also intervened in the foreign-exchange market through dollar sales.
The measures are intended to contain inflationary risks and ease pressure on the shilling, although their effectiveness will depend partly on developments in global markets and the domestic demand for foreign currency.
