Updated 22 October 2026
The Bank of Uganda said on Thursday, 22 October, that it was selling foreign currency in the market, eight days after an emergency policy-rate increase failed to halt the shilling’s decline for long.
The amount of the intervention was not disclosed in the notice sent to banks and seen by Reuters. The currency had traded as weak as 4,215 shillings per dollar a day earlier, according to an Absa market report cited by New Vision.
The central bank had raised its policy rate by 225 basis points on 14 October, from 9.75% to 12%. The shilling initially recovered before weakening again to a level below where it stood before the decision, according to market data reported on Thursday.
At the 21 October auction, the Bank of Uganda had accepted 372.55 billion shillings at face value, against an initial offer of 350 billion. Yields on the 91, 182 and 364-day bills had risen by 155, 265 and 300 basis points to 11.249%, 13.400% and 14.499%.
The weaker currency raises the local-currency cost of fuel, food and medicine imports billed in dollars. About 32% of bank loans were denominated in foreign currencies, according to the October bulletin of the Uganda Bankers Association cited by Daily Monitor.