The Uganda Shilling has emerged as the most stable currency in the world, outperforming major global currencies such as the UK Pound Sterling and the Hong Kong dollar, according to the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance, Ramathan Ggoobi.
Ggoobi made the remarks during the Quarter Three Press Briefing for the Financial Year 2025/26 held in Kampala, noting that the Shilling has remained resilient against major international currencies, particularly the US dollar.
He revealed that the local currency appreciated by 2.45 percent in the year ending December 2025.
“Currently, the Uganda Shilling is the most stable currency in the world, followed by the UK Pound Sterling and the Hong Kong dollar,” Ggoobi said.
Economists consider currency stability a critical pillar of economic confidence, as it reduces uncertainty for businesses, investors, and households, while supporting trade, investment, and effective economic management. Countries with stable currencies are also better positioned to withstand global economic shocks.
Ggoobi said Uganda’s broader economic performance has remained strong despite global uncertainties and the pressures commonly associated with election-year spending.
He reported that the economy grew by 6.3 percent in the Financial Year 2024/25 and is projected to grow between 6.5 and 7 percent in the current financial year, with double-digit growth expected in the medium term.
As a result, Uganda’s economy is projected to reach $68.4 billion (Shs249.4 trillion) in the Financial Year 2025/26.
Inflation has remained subdued, with headline inflation holding at 3.1 percent in both November and December 2025, a trend Ggoobi described as unusual during an election period.
He attributed this stability to targeted government interventions, including increased investment in food production, effective monetary policy, and the direct importation of fuel by the Uganda National Oil Company (UNOC).
“This stability is a result of strategic government investments in food production, effective monetary policy which has kept the Shilling strong, and direct fuel importation by UNOC, all of which have helped stabilise prices,” he said.
Ggoobi added that Uganda recorded the lowest inflation rate in Africa over the past decade, reinforcing the country’s macroeconomic stability.
On the external front, export earnings continued to grow strongly, with exports of goods and services reaching $13.4 billion (Shs48.2 trillion) in the Financial Year 2024/25. Merchandise exports accounted for $10.6 billion (Shs38.2 trillion).
For the 12 months ending November 2025, exports of goods alone stood at $12.79 billion (Shs46.0 trillion).
Uganda also registered a Balance of Payments surplus of $2.37 billion (Shs8.5 trillion) for the year ending October 2025, reversing a $683 million deficit recorded the previous year.
“This is the highest Balance of Payments surplus recorded in the last 15 years,” Ggoobi said, attributing the improvement to an all-time high financial account surplus of $5.6 billion (Shs20.2 trillion).
Foreign direct investment rose to $3.5 billion (Shs12.6 trillion), while portfolio inflows reached $1.7 billion (Shs6.1 trillion) over the same period.
Ggoobi also highlighted the growing role of the Ugandan diaspora, noting that remittance inflows increased to $1.6 billion (Shs5.76 trillion) in the Financial Year 2024/25, up from $1.1 billion in 2020/21.
He said the performance of the Shilling and other macroeconomic indicators demonstrates the strength of Uganda’s economic fundamentals and underscores the importance of currency stability in supporting growth, investment, and economic resilience—particularly ahead of the January 15, 2026 general elections.
