Uganda Shilling Becomese East Africa's Best-Performing Currency

The Uganda Shilling is currently the strongest currency in Africa, according to Uganda’s Ministry of Finance. Over the past 12 months, the Shilling has gained value by 6.1 percent, outperforming all other African currencies.

During the Uganda-UK Business Forum held in Kampala on Wednesday, Finance Ministry Permanent Secretary Ramadhan Ggoobi said the rise in the Shilling's value is due to Uganda's solid export performance and smart handling of global economic pressures. He said Uganda’s economy has stayed steady even as other countries faced financial challenges.

One of the major reasons behind this growth is high earnings from coffee exports, especially because of increased global prices. A foreign exchange trader noted that "coffee is bringing in a large amount of dollar inflows," which is boosting the Shilling.

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Commercial banks in Uganda are now quoting the Shilling between UGX 3,639 and 3,649 per dollar, which is stronger than last week's rate of UGX 3,660 to 3,670. This shows growing confidence in Uganda’s economy.

While Uganda’s currency is rising, other major African currencies like Kenya’s shilling, Nigeria’s naira, Ghana’s cedi, and Zambia’s kwacha are expected to stay stable but not show major gains.

• In Kenya, the shilling is holding steady due to low demand for dollars from importers.

• In Nigeria, the naira is stable around ₦1,530 to ₦1,550 per dollar, supported by central bank interventions and positive reserves.

• In Ghana, the cedi remains at 15.45 per dollar, thanks to balanced demand and supply in the market.

Experts say the Uganda Shilling is likely to keep getting stronger in the coming weeks if coffee exports continue to bring in more dollars and if importers remain quiet.

This performance is a good sign for Uganda’s economy and shows strong confidence in the country's long-term economic strategy.