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BOU: Central Bank forecasts rise in inflation
Bank of Uganda has warned that inflationary pressures are beginning to mount on the annual core rate of inflation which had been kept under control at a minimum low of 3.3 per cent until May this year.While commissioning Standard Chartered Bank’s Acacia Mall Branch , Bank of Uganda Governor Emmanuel Mutebile warned that core inflation is expected to double in the next financial year because inflationary pressures are expected to be stronger next year.In macro-economics, core inflation measures the inflation that excludes consumer goods and services like energy and food which often face volatile prices. It is sometimes viewed as an indicator of underlying long-term inflation. Read more
BOU: Central Bank changes CBR release plan
In an effort to strengthen the monetary policy framework, Bank of Uganda (BoU) will be releasing the Central Bank Rate (CBR) on a bi-monthly basis starting with the new fiscal year 2014/15.In a communication issued to the Daily Monitor, the Governor Bank of Uganda, Prof Emmanuel Tumusiime Mutebile, said: “The monetary policy framework will be held in the middle of the month, on the 10th working day of the month. This is to allow more time for incorporating economic data from the previous month into the analysis which informs the interest rate decision.”The CBR, which was introduced on the basis of inflation targeting lite (ITL) monetary framework in 2011, is intended to guide the setting of other interest rates in the economy. Read more
BOU: Uganda Shilling records weakest stand this year
The Uganda Shilling opened the week at its weakest standing since the beginning of the year with experts predicting a further depreciation.At the opening of business, the local unit was trading in the range of 2614/2624 against the US dollar, up from the 2605/2615 it traded. The depreciation for the last one month has seen the Shilling lose ground by more than 3 per cent from 2530/2540 it traded around the same time in May to the current 2614/2624.Although some have attributed Shilling’s decline to the recent United States aid suspension to Uganda, Bank of Uganda (BoU) director research Adam Mugume has said: “The weakness is associated with the anxiety associated with the recently presented 2014/15 Budget.” Read more
BOU targets commercial banks over high interest rates
Commercial banks in Uganda are not heeding to Bank of Uganda’s call to reduce interest rates and lend more to the private sector. High interest rates have put off many borrowers in Uganda.Bank of Uganda reports state that there has been only a modest increase in the stock of private sector credit. It said the level of private sector credit at the end of December 2013 was sh8.62 trillion, which is about 8% higher than the June 2013 levels.The ministry of finance states that in spite of a reduction in both inflation and the Bank of Uganda policy rate, lending rates charged by commercial banks continue to be prohibitively high and are keeping borrowers away from the credit markets.“We will continue to work with financial institutions to reduce the cost of loanable funds, by reducing the cost of doing business. There are a number of reforms that are expected to have a positive impact on financial sector,” finance minister Maria Kiwanuka said.Read more
BOU targets commercial banks over high interest rates
Commercial banks in Uganda are not heeding to Bank of Uganda’s call to reduce interest rates and lend more to the private sector. High interest rates have put off many borrowers in Uganda.Bank of Uganda reports state that there has been only a modest increase in the stock of private sector credit. It said the level of private sector credit at the end of December 2013 was sh8.62 trillion, which is about 8% higher than the June 2013 levels.The ministry of finance states that in spite of a reduction in both inflation and the Bank of Uganda policy rate, lending rates charged by commercial banks continue to be prohibitively high and are keeping borrowers away from the credit markets.“We will continue to work with financial institutions to reduce the cost of loanable funds, by reducing the cost of doing business. There are a number of reforms that are expected to have a positive impact on financial sector,” finance minister Maria Kiwanuka said. Read more
CBU: Banks write off bad debts as defaulters increase
Ugandan commercial banks stepped up efforts to clean up their books by writing off bad loans, highlighting the growing debt risks in the market.The quality of loans in Uganda’s banking industry has been deteriorating for the past two years, following a rise in lending rates to more than 30 per cent as the Central Bank tightened the monetary policy stance to curb inflation which peaked to 30.4 per cent in October 2011.The turbulent economic environment made it challenging for those who had taken loans to repay the loans as their income streams were negatively impacted by subdued demand and constrained growth in the market. As a result, many commercial banks are now being forced to write-off huge amounts of unpaid loans Read more
Orient Bank raises war on cybercrime
Orient Bank has enhanced security for its electronic and other online banking transactions after the Bank of Uganda (BoU) and the police warned industry players against risingg levels of cyber crime and electronic fraud.To keep ahead of competition and fraud-free, the bank last week launched enhanced debit visa chip and pin cards–innovations that will enable customers use the cards for on-line transactions and making payments at various merchant locations across the world with no worry of fraud.According to Deloitte East Africa Financial Crimes Survey, banks and to some extent, telecommunication companies that provide mobile money services, lose between $1million (about Shs2.5billion) to $10billion (about Shs25billion) to electronic fraud and cyber crime every year. Read more
BOU: Average lending rate rises to 21.9%
The average lending rate on Shilling denominated loans rose to 21.9 per cent from 20.7 per cent in February 2014, a development which indicates that the cost of loans is getting expensive once again.Average/commercial lending rates are those charged by banks on the loans that they lend out to the general public. These are different from the Central Bank Rate which is a policy rate set by the Bank for loans lent out to commercial banks.Similarly, the new development in Uganda’s credit market shows that the time deposit rate on shilling loans also rose from 11.1 per cent to 12.4 per cent in March 2014. On the contrary though, the rate on foreign currency denominated loans, remained relatively stable, declining only marginally to 9.4 per cent from 9.7 per cent in February. Read more
BOU: Shilling weakens, pressured by growth forecast cut
The Ugandan shilling fell on Friday, sapped by demand from energy and manufacturing firms and on reduced growth expectations after the central bank cut its forecast for economic output.Commercial banks quoted the currency at 2,525/2,535 down from Wednesday's close of 2,515/2,525. Ugandan markets were closed for Labour Day on Thursday."The market is receiving a lot of end month-related demand from the manufacturing and energy sectors," said Shahzad Kamaluddin, a trader at Crane Bank.Also, "the central bank's new forecast for growth signals the economy isn't doing very well... that's not good news for the shilling." Earlier on Friday, Bank of Uganda cut its growth forecast for the 2013/14 fiscal year to 5.7 percent from 6 percent while holding the benchmark interest rate at 11.5 percent.David Bagambe, a trader at Diamond Trust Bank Uganda, said the shilling was also being undermined by market expectations of a slowdown in hard currency flows from offshore investors.Read more
BOU: Less demand for the Dollar keeps Shilling strong
Less demand for the dollar has kept the Uganda Shilling strong; a situation experts say is good for the economy which is largely dependent on imports.According to the Bank of Uganda’s daily report, by close of yesterday, the shilling was trading in the ranges of 2,514/2,524 against the 2,517/27 it traded on early this week.Explaining this performance, Standard Chartered Bank’s Head of Financial Markets James Mutuku said: “The strengthening of the shilling from 2,570 to the current levels of 2,520 is an indication that it will remain in the 2,500-2,550 range in the medium term”.Adding that the 2,500 region presents a very strong support and it’s highly unlikely that the current environment will strengthen beyond that level. Read more
CBG, Emmanuel Tumusiime: Uganda’s first female bank MD bows out
Ms Edigold Monday, the only Ugandan woman to have risen to the position of a managing director (MD) of a top pan-African bank has resigned after serving the banking industry for about two decades.Ms Monday has won the admiration of many including the Central Bank governor, Emmanuel Tumusiime Mutebile who believes that she has left the industry at a time her expertise is handy.“Under Ms Monday’s leadership, Bank of Africa strengthened its financial position with total assets growing by 91 per cent, deposits by 85 per cent, and loans and advances by 74 per cent.The bank also expanded its branch network from 16 branches in 2009 to 33 branches—all well spread across the country,” Mr Mutebile said at the farewell dinner hosted in her honour last week in Kampala. Read more
Forex reserves increase by Shs584b
Uganda’s foreign exchange reserves have increased by $230 million (about Shs584 billion) over the last four months.This, according to Bank of Uganda (BoU), is an equivalent of 4.4 months of future imports of goods and services.This is the highest level in terms of volume of foreign exchange reserves in import cover in the recent years. “The stock of Uganda’s foreign exchange reserves at the end of February 2014 amounted to $3.276 billion, which is an increase from $2.046 billion at end of November 2013,” the executive director of research BoU, Dr Adam Mugume, told the Daily Monitor in an interview recently.Bank of Uganda uses the foreign exchange reserve to intervene in the domestic money market to bring about stability when there are volatilities in the foreign exchange market, which can either be the appreciation or depreciation of the Uganda shilling against the United States (US) dollar.Uganda calculates and keeps all her foreign exchange reserves in US dollars. Read more
BOU: Mutebile tips banks on cost barriers
Central bank governor, Emmanuel Tumusiime Mutebile, has tipped commercial banks in Uganda on financial inclusion efforts.“Extending financial services will only be possible on a large scale if banks can overcome the cost barriers which are a major obstacle to the wider provision of financial services,” he said.Mutebile was at the launch of Orient bank’s latest branch at Acacia mall in Kampala.He also bemoaned banks’ high operating costs as a share of total assets is too high.  “One of the ways in which costs can be lowered is through the introduction of new technologies for delivering financial services, such as information technology,” he advised.He also reiterated the central bank's commitment to ensuring price stability and a sound financial system. “We shall continue to conduct vigorous financial sector regulation and supervision to ensure that all banks are well capitalized and that they have robust risk management frameworks.” Read more
Central Bank governor reassures on economy
Central bank governor Tumusiime Mutebile has reassured investors of a stable macroeconomic environment backed by predictable information flow to enable them decide on where and when to invest in Uganda.In a key note presentation at the Uganda Investment Summit at the Speke Resort Munyonyo  Mutebile said the country is undergoing rapid transformation in it financial sector with 25 banks most of which are integrated in the global market. Thus he said has elevated the Ugandan economy to the status of a “frontier market.”“The Bank of Uganda makes public its forecast for inflation one year ahead, we believe that the better the public and the markets understand our monetary policy, the more effective it will be,” noted Mutebile.Inflation, a core macroeconomic factor is critical to investors because high and unstable  inflation wipes away the value of investments which may scare away investors.Current inflation has fallen to 7.1% from a high of over 30% over two years ago. Speaking to a hall packed with global and local investors, Mutebile pointed out that the loan to deposit ratio has risen from 54% in 2003 to 78% today. Read more
Corporate Companies Not Making Profits - BoU
A huge chunk of Ugandan corporate business companies are no longer remitting taxes to Uganda Revenue Authority (URA) simply because they are not making profits, said Bank of Uganda on Wednesday. The Central Bank’s Research Director, Dr Adam Mugume, said the “biggest shortfall in tax revenue came from corporate taxes; from institutions making no profit- so they can't pay or remit taxes.” Mugume’s revelations underscore the uneasy climate condition within which businesses are operating in Uganda. His statement also comes against the backdrop of media reports of several leading tycoons losing vast multi-billion properties to commercial institutions due to an unprofitable business atmosphere. Mugume made the remarks at the Central Bank during the release of the monthly monetary policy by Governor Tumusiime Mutebile. The Director of Banking, Ben Ssekabira also noted that the ratio of bad loans to total credit currently stands at 6.9 percent from 4.9 percent in June 2013, implying many borrowers were not able to service their loans.  Read more
Weak Shilling pushes fuel prices up
Tough times are ahead as the depreciating Shilling pushes up the price of fuel, something that analysts say will see the cost of living go up.Bank of Uganda opening market yesterday placed the dollar at 2560/2570, indicating a more than Shs70 increase compared to what it traded at the beginning of last week.Experts in the market have attributed the depreciation of the local unit to the speculations following the donors’ announcement to suspend aid after the enactment of the Anti-Homosexual Act.In an interview with the Daily Monitor, the Bank of Uganda Director Research, Dr Adam Mugume, said: “It is true the Shilling has lost ground largely because of speculative reasons and also the overshooting behaviour of the exchange rate once the market experiences a slight disruption.” Read more
Reduce lending rates, Mutebile tells banks
Banks across the country have been asked to align their lending rates with the Central Bank rate (CBR).The call by Bank of Uganda Governor Emmanuel Tumusime Mutebile, was made during the official launch of Guaranty Trust Bank (Uganda) Ltd on Monday.Currently, the CBR at which commercial banks borrow money from the Central Bank stands at 11.5 per cent. The weighted average lending rate in the commercial banks currently stands at above 22 per cent.“Bank of Uganda is committed to forcing price stability and ensuring sound financing system. I therefore ask banks to align charges in lending rates to the Central Bank Rate (CBR). These rates are still high and they must come down,” Mr Mutebile said. Read more
CB: Shilling weakens on dividend flows
The Ugandan shilling weakened on Monday as foreign-owned commercial banks stocked up greenbacks in preparation to make dividend payments abroad, but a scheduled Treasury auction this week was seen limiting the local currency's losses.At 1127 GMT commercial banks quoted the currency of east Africa's third-largest economy at 2,570/2,580, weaker than Friday's close of 2,555/2,565."We've had a lot of (dollar) appetite from banks which I think is being driven by preparations for dividend payments," said Ali Abbas, trader at Crane Bank.Money market analysts say the local currency's medium-term outlook is weak, undermined by concerns over the potential economic impact of aid cuts by western donors. Read more
Revenue deficits push up rates on government securities
Increased issuance of treasury bills/bonds and the participation of foreign investors in Uganda’s domestic financial market have caused rates on government securities to rise marginally over the last one month. Bank of Uganda explains the rise as largely a result of the need for increased domestic financing to accommodate the shortfall in revenue and increased government expenditure.The interest rate on the 91 day treasury bill went up from 8.82 per cent in January to 9.41 per cent in February while the 182-day treasury day rates went up from 11.58 per cent to 11.97 per cent in February. The two-year treasury bonds rate went up from 13.4 per cent to 13.72 per cent in February, while the 15-year treasury bond rates went up from 15.15 to 15.25 per cent.Bank of Uganda perspective In an interview with the Daily Monitor last week, the Director Domestic Financial Market Bank of Uganda, Mr Stephen Mulema, said: “I can attribute the increase in yields to the increase in issuance volumes given that the rising trend began when we increased the issuance amounts.” Read more
African central banks advised on curbing inflation
The Governor Bank of Uganda, Mr Emmanuel Tumusiime Mutebile, has asked African central banks to adopt the inflation targeting monetary policy frameworks, saying it is very effective in controlling the increase in prices of commodities and stabilising interest rates.While delivering his keynote address during the International Monetary Fund and Bank of Uganda conference in Kampala yesterday, Mr Mutebile said: “I strongly believe that it is both feasible and desirable for central banks in Sub-Saharan Africa to modernise their monetary policies and adopt inflation targeting frameworks.” Read more
Central bank governors to meet over monetary policy
African Central Bank governors are scheduled to meet in Kampala, Uganda early next week with a view to improve their economies’ monetary policies.The meeting slated for March 17 to 18, will allow the continent’s governors to chart a way forward in implementing a modern monetary policy that has been recommended by International Monetary Fund (IMF) to mitigate both internal and external risks in their economies.African countries are experiencing challenges to realise stable monetary policies framework in their economies because of evolving risks that come with internal and external shocks in the economy, hence the need for modernising of monetary policy frameworks.The high level two-day conference on Modernising Monetary Policy Frameworks in Low Income Countries (LICs) is being organised by the IMF and the Bank of Uganda, with support from the UK’s Department for International Development and it will be held at Speke Resort Munoynyo. Read more
Bank of Uganda maintains lending rate at 11.5%
The Central Bank has kept its key lending rate at 11.5 per cent for the second consecutive time, saying the country needs a flexible environment to support low lending rates.Uganda’s economy is experiencing positive and negative conditions emanating from both domestic and external pressure, which the Bank of Uganda says needs a balanced policy stance to ensure stability in the economy. The decision to retain the Central Bank Rate - the rate at which commercial banks borrow money from the Central Bank - is aimed at consolidating the gains made to stabilise the Uganda Shilling which has been sliding on the back of donor aid cuts.The move also shrinks the likelihood of a reduction in the cost of loans, since commercial banks use the CBR to set interest rates. Read more
BOU: Shilling weakens on donor aid cuts
The Shilling is losing stance against the United States dollar after the news of donors suspending aid to Uganda following the signing of the ant-homosexually Act.Earlier in the week, the Shilling had slightly strengthened against the dollar in the trading following the Central Bank’s withdrawal of excess liquidity coupled with reduced dollar demand from the corporate sector.The Central Bank withdrew Shs397 billion through a seven-day repurchase agreement made on Tuesday but this has had a short-live effect.Responding to the sudden trend for a local unit which had been stronger and stable since the beginning of the year, Bank of Uganda director of research Adam Mugume said: “Some donors have indicated that they will cancel aid to Uganda. This news has sent shocks, resulting in a spike in the exchange rate depreciation”. Read more
Shilling steady, seen stronger on dollar inflows
The Ugandan shilling was steady on Wednesday and was expected to appreciate in the days ahead as the central bank mopped up liquidity and dollars flowed in from offshore investors buying debt.Commercial banks quoted the currency of east Africa's third-largest economy at 2,453/2,458, little changed from 2,452/2,457."The repo that the central bank did today coupled with suppressed demand for dollars will give the shilling a bullish tone going forward," said David Bagambe, a trader at Diamond Trust Bank. "However, the shilling will also derive a bit of energy from inflows from foreign investors who are targeting Ugandan debt."Bank of Uganda, the country's central bank, issued a seven- day repo that was taken at 11.5 percent. It did not disclose how much it sucked out of the market. Read more
BOU: 286 farmers apply for ACF loans
Despite majority of Ugandans being involved in agriculture, only 286 farmers have applied for government’s cheaper loans estimated at Shs218 billion, under the Agricultural Credit Facility (ACF), a Bank of Uganda (BoU) official has said.The executive director Finance BoU, Mr David Kalyango, told the Daily Monitor, that of the 286 loan applications, 239 were approved and money disbursed, with 65 per cent of the loan portfolio financing agro-processing projects.Dismissing allegations of low uptake, Mr Kalyango said the scheme has steadily improved over the years, with the number of participating financial institutions also increasing to 17 as at December 2013 from 11 in 2010. Read more

Uganda’s current account deficit improves by Shs437 billion
The Bank of Uganda state of economy report for February indicates Uganda’s current account deficit improved to $417.2 million (about Shs1.030 trillion) during the quarter ended December 2013 from a $594.2 million (about Shs1.467 trillion) deficit in the previous three months period (quarter).However, Uganda still has more work to do in order to further reduce the negative effects of a heavy current account deficit on its economic growth. “The improvement in current account deficit was driven mainly by: higher receipts of current transfers due to peak season receipts of workers’ remittances in December and higher project aid inflows to government and lower deficits posted in the goods, services and income accounts,” the Central Bank report read. Read more 
Uganda Keeps Lending Rate At 11.5% As Inflation Drops
The Central Bank of Uganda  pegged lending rates at 11.5 percent, the lowest since 2011 when the apex bank tightened monetary policy to control skyrocketing inflation.The move came in anticipation of a surge in inflation rates. Uganda’s annual core inflation rate dropped to 4.6% in January from 5.7% in December, according to data from the country’s bureau of statistics.“Although core inflation has decelerated, helped by recent Ugandan shilling appreciation, food prices  which have risen strongly in recent months – are still a concern,” Standard Chartered economist Razia Khan said in a note.The central bank’s deputy governor, Louis Kasekende fears that the conflict in South Sudan, which he blames for some of Uganda’s economic troubles, if sustained could plunge Uganda into further economic misfortune. Read more
Shilling strengthens beyond initial forecasts
The Uganda Shilling has gained some ground against the dollar since the beginning of the year -a stance experts say has gone beyond their prediction.Yesterday, data from Bank of Uganda (BoU) showed the Shilling was trading between 2481/2491 by opening of business, a stronger standing than what was experienced at the beginning of the year when it traded at 2520/2530.Experts attribute the strength to the increase in exports from the country especially coffee - the country’s leading export commodity. Read more

BOU: Uganda maintains key lending rate at 11.5%
 The Bank of Uganda has maintained its lending rate (central bank rate) to commercial banks at 11.5 per cent, unchanged from last month.The central bank cited the likelihood of slightly high inflation levels in the medium-term as the reason for maintaining the rate.The current macro-economic outlook by the Bank of Uganda forecasts suggests inflation will go down further in the coming months, driven by improved food crop harvests, but rise to 6.5 - 7.5 per cent during the latter part of the year. Read more

BOU: Regional traders to benefit from quick money transfer
Kampala- Ugandan traders will be able to transfer money across borders in the East African region within a day thanks to a new initiative that has inter-linked the region’s central banks.The initiative which is part of the projects by the East African Community member states to grow their capital markets has taken effect in Uganda, Kenya and Tanzania while Rwanda and Burundi are expected to join later.The East African Cross Border Payment System (EAPS) will use the Real Time Gross Settlement system (RTGS). Read more

 BOU Marginally Reduces Key Lending Rate to 11.5 Percent
Bank of Uganda today (Dec. 3) announced a marginal fall in the central bank rate (CBR) by 50 basis points from 12% in November, 2013 to 11.5% in December.While announcing the new rate before the media, Central Bank Deputy Governor, Louis Kasekende said the reduction was based on recent inflation numbers released by Uganda Bureau of Statistics at the end of November.Read more

BOU bond sale may receive mixed reception
Uganda's bond sale this week, its last scheduled sale of the year, is likely to receive a mixed reception as the central bank offers the popular three-year bond alongside the less sought after 15-year paper.The Bank of Uganda will sell 80 billion shillings each in the three- and 15-year issues on December 4.Low appetite is expected for the latter, with demand mainly from pension funds."The three-year will be well received. There's quite a bit of money in the system," said a trader. "The 15-year, I don't think the reception will be that great given the tenor."The yield on the three-year bond is likely to remain at current levels of 14-14.5 percent, where it is currently trading on the secondary market, the trader said. Read more

Government scraps VAT levy on hotels outside Kampala
Government has announced that it has reinstated exemption of Value Added Tax (VAT) on accommodation (hotels and lodges) outside Kampala in a move to promote Tourism.The Secretary to the Treasury , Mr Keith Mukahanizi, made the announcement recently, saying the recently introduced 18 per cent VAT on accommodation facilities outside Kampala is now abolished. Read more

Uganda banks start reporting non-performing loans by currency
Commercial banks in Uganda are now reporting non-performing loans (NPLs) broken down by currency, complying with the regulator’s move to cushion the lenders against currency fluctuations.Bank of Uganda (BoU) in its financial stability report for the period ended June 2013 said that it was monitoring the growth of foreign currency-denominated loans to reduce risks associated them.“The BOU has strengthened its monitoring and surveillance of factors which might pose potential risks to the banking system. Read more

Bank of Uganda backs new Finance Bill
The Bank of Uganda agreed with the objective and the proposed amendments in the newly tabled Finance Bill 2012, saying the amendments will go a long way in strengthening the management of economic and financial matters of the economy. Presenting the Bank’s views on the Bill currently being scrutinized by the finance committee, the Deputy Governor, Dr Louis Kasekende, said the Bill will also ensure macroeconomic stability, economic growth and national development plans when setting fiscal objectives within the macroeconomic framework.“Specifically the amendments also look to commit the Government to efficient management of the oil revenues,” he told the committee chaired by the Kyadondo County North MP, Robert Sebunya. Read more

BoU advised on hiking interest rates
High interest rates on loans from commercial banks have resulted into losses on the side of traders.Commercial banks increase the prime lending rates and interest rates per year.Business community and individuals have been forced to reduce on their lending-borrowing capacity due to the fear of making losses as their securities are taken up by commercial banks on failure to pay back the loans fully. Read more

                  BOU: IMF concludes mission to Uganda on the first review of the policy support Instrument
the Minister of Finance, Planning and Economic Development; the Governor of the Bank of Uganda (BoU); as well as with other senior government officials and representatives from the international, business, and financial communities.At the end of the mission, Ms. Ana Lucía Coronel, IMF mission chief and senior resident representative for Uganda, issued the following statement:“The growth recovery to 5¾ percent in 2012/13, driven by public investment and consumption and stronger private activity in telecommunications, has been supported by a fiscal stance based on strong implementation of investment projects.Read more
BoU Governor cautions farmers against agriculture loans
Governor Bank of Uganda, Emmanuel Tumusiime Mutebile. has warned farmers against acquiring loans to finance agricultural activities until they have grasped good agricultural practices. He said this is because uncertainties in the sector could keep them in a debt trap. He instead advised farmers to only ask for loans when they are in a position to use the money as finance to raise their incomes and sufficiently repay the loans and earn some profits as well. Read more

Bank of Uganda: Uganda's old Bank notes to expire next month - Mutebile
Whoever has bank notes of 1987 has to exchange them at the nearest Bank of Uganda office located in several parts of the country or else lose out, Central Bank Governor Mutebile said at a press conference at the Bank's headquarters in Kampala on Nov. 4."Your last chance to exchange old bank notes expires on December 31, 2013 at 12:00pm local time," Mutebile said, adding the exchange is free of charge and at full face value. Read more
Bank of Uganda: Uganda’s account deficit now stands at Shs1.4 trillion

Low earnings from exports and higher import prices have led to deterioration in Uganda’s current account deficit by $178.8 million (about Shs450.879 billion) during the quarter that ended July to September 2013.Bank of Uganda says the deterioration has seen the total volume of Uganda’s current account deficit increasing to $559.2 million (about Shs1.410 trillion) during the quarter ending September 2013 from a $380.4 million (about Shs959.254 billion) deficit in the previous quarter. Read more.
Bank of Uganda maintains lending rate at 12%
Kampala- Bank of Uganda yesterday maintained the Central Bank Rate (CBR) at 12 per cent, saying the current rate is neutral enough to support the country’s high economic growth as well as low commercial lending rates.Read more
BoU: Markets expects stable rate of inflation eases
Bank of Uganda is expected to keep the rate of its key monetary instrument steady after the of rate inflation eased in the month of October. BOU will make an announcement on the Central Bank Rate for the month of November, with some experts in the market expecting an unchanged rate, but most importantly with a wider section of the traders and public hoping the rate will boost credit growth as the festive season begins. Read more
BoU: Borrowers await good news as Uganda, Kenya central banks meet

The central bank Monetary Policy Committees (MPC) of both countries are expected to meet on Monday and Tuesday to set the Central Bank Rate (CBR). Ordinarily, commercial banks should use the CBR to benchmark the interest they charge customers. Read more

UBOS: Ugandan inflation edges down to 8.1 percent in October
KAMPALA (Reuters) - Uganda's headline inflation rate slowed to 8.1 percent in the year to October and the Uganda Bureau of Statistics revised September's rate to 8.4 percent from 8 percent.Read more
FDI to Kampala rises to $358m
Uganda posted a 25.6 per cent rise in foreign direct investments (FDI), grossing $358 million in the three months to August 2013. Data released by the Bank of Uganda (BoU) shows that the country had registered FDI of $285.3 million in the preceding three-month period. BoU executive director for research Adam Mugume attributed the positive momentum to ongoing investment in the oil sector and infrastructure development, specifically in electricity and roads. Read more
BoU maintains CBR at 12%
The Bank of Uganda yesterday stayed its policy rate at 12 per cent, citing stability in the economy with increased investments. The BoU maintained the rate at 12 per cent because it anticipates that the inflation rate will fall back to its policy target of 5 per cent over the medium term. Presenting the monetary policy statement for October, the Governor of Bank of Uganda, Mr Emmanuel Tumusiime Mutebile, said the increase in food prices is temporary and should start to abate by the end of 2013 or beginning of 2014. Read more
BoU: 'Drought' blamed for the rate rise
Bank of Uganda (BoU) raised its benchmark rate to 12 per cent to mitigate against food inflation. Emmanuel Tumusiime-Mutebile, governor BoU in a statement said that Uganda is currently facing a supply side shock to agriculture which has raised food prices and that this may also impede real economic growth in the current 2013/14 financial year. The Uganda Bureau of Statistics last week said that the pace of price increases of basic goods and services rose to 7.3 per cent in August from 5.1 per cent in July reflecting the increased cost of food as a result of the food shortage caused by the drought. Read more
Ugandan shilling firms after central bank tightens supply
The Ugandan shilling firmed on Wednesday (28 Aug), after the central bank mopped up excess supply using repurchase agreements (repo), making it more expensive for commercial banks to hold longer dollar positions. Commercial banks quoted the currency of east Africa's third-largest economy at 2,575/2,585, slightly stronger than Tuesday's close of 2,585/2,595. Read more
Middle-Income status target too ambitious
Economic experts have noted that it will be impossible for Uganda to attain middle income status by 2017 at present rates of economic growth and high population growth, despite that, actions to get there must continue. Emmanuel Mutebile, Bank of Uganda governor notes that a more realistic target would be to reach middle income status by the 2030s. Uganda's Gross National Income (GNI) is at $510 (sh1.3m) far below the $1,036 (sh2.7m) target income for middle income status. "To achieve middle income status, the Government needs to adopt a long term approach to economic strategy, focusing on the policies which can generate sustainable high rates of growth for the next 20 years," he explained. Read more
The Bank of Uganda to launch diaspora bond to woo Ugandans abroad
The Bank of Uganda will soon launch the first Ugandan Diaspora bond to provide a safe haven for Ugandans abroad looking to invest locally, an investment compendium will also be dispatched to each of Uganda’s 30 foreign missions. Ambassador James Mugume, the permanent secretary of the foreign affairs ministry noted that a secure communication link between Uganda’s foreign missions and Kampala will soon be rolled out to allow trade of the bond among other things. Read more
New mobile money firm launched
EzeeMoney, a new mobile money service provider, has been officially launched in Ugandan. The service operated by EzeeMoney Limited will work in collaboration with Centenary Bank-which will provide an escrow account to primarily safeguard the electronic transfers. Mr Emmanuel Mutebile, the Governor Bank of Uganda, said in his speech that the entry of the new product will further cement the growth in money transfer services that has been witnessed in the last five years. “The product will help build a modern and inclusive financial services industry in Uganda,” he said.   Read more
Bank of Uganda is prudently managed
"The Bank of Uganda assures the public that it is prudently managed, and has adequate resources, including foreign reserves to maintain price stability and a sound financial system. The Bank of Uganda believes in the values of transparency and accountability and is very supportive of efforts by the media to bring to light the conduct and performance of public entities" - Dr Tibamwenda is the director of communications, Bank of Uganda.  Read more
Bank of Uganda to buy dollars
The Uganda shilling was relatively flat against the dollar for most of the week (W/E 2/8/13), ahead of two key economic events: - the inflation number and Central Bank Rate policy announcement - as most market players refrained from placing big orders. However, overall for the month of July, the shilling registered a marginal gain of 0.1 per cent. Another notable development was the announcement by Bank of Uganda to resume its reserve build-up program through daily purchases of $2m, aimed at boosting sovereign reserves. Recent numbers indicate a reserve level of approximately $3bn.  Read more
Bank of Uganda explains deficit
UGANDA's Central Bank is in deficit but its top officials maintain that this does not in any way pose a threat to the economy.  Prof Emmanuel Mutebile, the Governor of Bank of Uganda while reading the Monetary Policy Statement for the month of July 2013 in Kampala last week said that the deficit is a necessary 'evil' given the current global economic environment. Read more
Bank of Uganda holds rates at 11 percent, sees inflation risks
Uganda’s central bank held its benchmark lending rate at 11 percent on Tuesday, citing renewed inflationary pressure. Bank of Uganda Governor Tumusiime Mutebile. Policymakers said the bank Read more
Bank of Uganda projects slight rise in inflation  
The Central bank managed to achieve its target of stemming inflation to a single digit for the 2012/13 financial year.  For the year ended June 30, 2013, core inflation was at 5.5 per cent, which is within the bank’s average target, down from the double digit inflation in June 2012. While presenting the monetary policy statement earlier this week, Governor Emmanuel Tumusiime-Mutebile said their forecasts show core inflation will rise slightly but fall again after about three months.  Read more

Bank of Uganda
The Governor
Mr Emmanuel Tumusiime-Mutebile 

Dr Jan Tibamwenda
Director Communications Department
Bank of Uganda