Uganda shilling continues to gain against US dollar

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The Ugandan Shilling continued to gain against the US dollar in August 2025, recording an average mid-rate of shillings 3,563.9 per dollar, down from 3,586.57 in July 2025.

This is contained in the August 2025 performance of the economy report by the finance ministry.

The report says the continued strengthening of the Shilling was supported by higher export earnings and the weakening of the dollar globally.

“Additionally, a stable macro-environment has encouraged increasing external inflows such as remittances and inflows from offshore investors into Government securities, boosting the supply of forex,” it says.

Similarly, the Shilling appreciated by 1.6% and 2.1% against the Euro and British Pound Sterling in August 2025, respectively.

Since early 2025, the report indicates, the Shilling has weakened against the Euro and Pound, reflecting stronger European growth, tight monetary policies that supported their currencies, and rising import demand in Uganda.

In August, however, this trend reversed as European growth slowed, while Uganda’s increased exports and a trade surplus with the European Union strengthened the Shilling.

Financial experts say a stronger Shilling may lead to reduced import costs and enhance purchasing power for foreign goods and services, and potentially contribute to lower inflation.