The Uganda Shilling has been recognized 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 Ramadhan Ggoobi, the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance.
Shilling’s Resilience Against Global Currencies
During the Quarter Three Press Briefing for the Financial Year 2025/26, Ggoobi shared that the Shilling appreciated by 2.45% in the year ending December 2025. He emphasized that this stability was significant, as it lowered uncertainty for businesses, investors, and households, while also strengthening Uganda’s position in global markets. Economists see currency stability as a critical pillar of economic confidence, as it helps manage economic cycles and supports trade and investment decisions.
Countries with stable currencies are generally better equipped to withstand global economic shocks, and Uganda’s performance has shown that it remains resilient in a changing environment.
Uganda’s Economic Growth and Inflation
Ggoobi also highlighted Uganda’s economic growth, which surged by 6.3% in the Financial Year 2024/25 and is projected to grow between 6.5% and 7% in the current financial year. The country’s economy is on track to reach a size of $68.4 billion (Shs 249.4 trillion) in 2025/26.
Inflation has remained low, with headline inflation standing at just 3.1% in both November and December 2025, a figure that Ggoobi described as unusual during an election period. He attributed the country’s stable inflation rate to several government interventions, including:
- Increased investment in food production
- Tight and effective monetary policy
- The direct importation of fuel by the Uganda National Oil Company (UNOC)
These measures have helped stabilize prices and maintain the strength of the Shilling.
Strong Export Performance and Improved Balance of Payments
Uganda’s export earnings continued to grow in 2025, reaching $13.4 billion (Shs 48.2 trillion) in 2024/25, with merchandise exports accounting for $10.6 billion (Shs 38.2 trillion). For the 12 months ending November 2025, exports of goods alone stood at $12.79 billion (Shs 46.0 trillion), demonstrating sustained export performance despite global economic uncertainty.
The country also saw a significant improvement in its Balance of Payments, recording a surplus of $2.37 billion (Shs 8.5 trillion) for the year ending October 2025. This marked a sharp turnaround from the $683 million deficit the previous year. The surplus was largely driven by foreign direct investment (FDI) and portfolio inflows, which totaled $3.5 billion (Shs 12.6 trillion) and $1.7 billion (Shs 6.1 trillion), respectively.
Contribution of the Ugandan Diaspora
Ggoobi also highlighted the growing importance of remittances from the Ugandan diaspora, which increased to $1.6 billion (Shs 5.76 trillion) in the 2024/25 financial year, up from $1.1 billion (Shs 4.0 trillion) in 2020/21. These remittance inflows have contributed significantly to the country’s overall economic stability.
Conclusion
The strength of the Uganda Shilling, coupled with the country’s strong economic fundamentals and continued macroeconomic stability, demonstrates the importance of currency stability in supporting economic growth, investment, and resilience. As Uganda continues to build on these gains, the Shilling’s performance remains a key indicator of the country’s economic confidence and ability to navigate global challenges.
