17-07-2025
Uganda's reserves rise by a third due to central bank forex purchases
Uganda's foreign exchange reserves rose by about a third over the past year, after what a central bank official described as direct purchases by the bank following healthy forex inflows from commodity exports and offshore sales of government bonds.
Gross reserves stood at $4.3bn (R76.93bn) in June, equivalent to 3.8 months of import cover and up from $3.2bn (R57.25bn) a year earlier, the finance ministry's Permanent Secretary Ramathan Ggoobi told a press conference.
Jimmy Apaa, the central bank's director for financial markets, told Reuters the bank had bought close to $2.2bn (R39.36bn) from the foreign exchange market from July 2024 to June 2025 to boost reserves.
Healthy foreign-currency inflows from exports of commodities such as coffee and cocoa and offshore flows into Ugandan government bonds for their relatively high interest rates had helped the bank make the purchases, Apaa said.
The Bank of Uganda has previously said it plans to buy gold to diversify its reserve holdings.
Uganda's economy has recorded strong growth in recent years, supported by oil-sector investments and infrastructure spending. But rising government debt and servicing costs have threatened the sustainability of public finances.
