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Ugandan shilling appreciates against US dollar
The appreciation was mainly driven by increased foreign exchange inflows from remittances, portfolio investments, and export earnings from agriculture, mining and energy sectors.
Ugandan shilling appreciates against US dollar
By: Umar Kashaka, Journalist @New Vision
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The Ugandan shilling appreciated by 0.2% against the US dollar in July this year, trading at an average mid-rate of sh3,704.51/ per dollar, compared to sh3,710.64 recorded a month earlier.
This is contained in the finance ministry’s Performance of the Economy report for July 2026.
The appreciation was mainly driven by increased foreign exchange inflows from remittances, portfolio investments, and export earnings from agriculture, mining and energy sectors.
Other currencies in the East African Community recorded mixed movements against the dollar in the period under review.
The appreciation was mainly driven by increased foreign exchange inflows from remittances, portfolio investments, and export earnings from agriculture, mining and energy sectors.
Other currencies in the East African Community recorded mixed movements against the dollar in the period under review.
The Kenyan shilling appreciated by 0.1%, respectively, while the Tanzanian shilling, Rwandan franc and Burundian franc depreciated by 0.5%, 0.2% and 0.1%, respectively.
The weighted average lending rate on Ugandan shilling-denominated credit fell from 18.00% in May 2026 to 16.93% a month earlier partly due to lower risk premiums on loans following continued improvement in economic activity.
The weighted average lending rate on foreign-currency-denominated credit also declined from 7.28% to 6.93% over the same period supported by increased foreign-currency deposits, stemming from sustained foreign direct investment inflows.
The weighted average lending rate on Ugandan shilling-denominated credit fell from 18.00% in May 2026 to 16.93% a month earlier partly due to lower risk premiums on loans following continued improvement in economic activity.
The weighted average lending rate on foreign-currency-denominated credit also declined from 7.28% to 6.93% over the same period supported by increased foreign-currency deposits, stemming from sustained foreign direct investment inflows.