Uganda’s FX reserves rise 56% as central bank expands gold plan

what happened

According to Newsmetry API, Uganda’s foreign exchange reserves rose 56% year on year in the 12 months to June, reaching $6.7 billion from $4.3 billion in the previous period. The central bank reported the increase on Monday.

The regulator plans to continue its gold-buying program in the 2026/27 financial year, ending in June 2027, as part of efforts to diversify its reserves. In its report, the bank said the gains had strengthened confidence in Uganda’s macroeconomic position and external-sector resilience.

The latest reserve stock covers 3.7 months of future imports, below the central bank’s target of four months. Higher reserves may help cushion the shilling, which has weakened sharply in recent weeks and fallen through a series of all-time lows. The central bank says it will not target a specific exchange-rate level, but will seek only to smooth market volatility.

why it matters

The larger reserve buffer supports Uganda’s external position, while planned gold purchases will broaden the composition of its holdings. The shilling remains under pressure, and import cover is still below the regulator’s target.

instruments