For 14 months, the Ugandan shilling has continued to appreciate, a trend Governor Michael Atingi-Ego attributes to strong fundamentals rather than Bank of Uganda intervention.
He clarified that the Bank’s last sale-side action was in June 2022, noting that recent gains have been driven by strong coffee and cocoa exports, higher global coffee prices, prudent monetary policy, foreign exchange market reforms, offshore investor inflows, and a weaker US dollar.
The Governor emphasized that the exchange rate remains market-determined, adding that artificial support for exporters could risk inflation and higher interest rates.
