By KT Reporter
Professor Augustus Nuwagaba, the Bank of Uganda Deputy Governor, has attributed Uganda’s currency gain against the dollar to an increase in valued exports.
Commercial banks on Thursday quoted the shilling at 3,497/3,507 to the dollar, compared to last week’s close of 3,495/3,505. The local currency ended June 2025, trading at an average mid-rate of 3,605.84 Shillings per dollar, compared to 3,653.40 per USD in May 2025, leading to a 1.3 percent appreciation, according to Bank of Uganda data.
On an annual basis, the shilling appreciated by 2.7 percent against the US Dollar in the financial year 2024/25 compared to 2023/24.
According to Professor Nuwagaba, the export of coffee, refined Gold has led the shilling to gain strength against the dollar. Nuwagaba says in this financial year, coffee export has so far profited 2.1 billion US Dollars, while refined gold export has profited 3.8 billion US Dollars.
Nuwagaba also says labour export to Arab countries has also profited 1.7 billion US Dollars.
Nuwagaba, however, says the country’s economy is still facing a challenge of a very low financial depth due to a lack of savings culture among Ugandans, and as a result, bank interest in Uganda has remained high.
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