The Shilling has emerged as the most stable currency in the world, outperforming the UK Pound Sterling and the Hong Kong dollar, according to Ramadhan Ggoobi, the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance.
Ggoobi made the remarks during the Quarter Three Press Briefing for the Financial Year 2025/26 held in Kampala, where he said the Shilling had remained resilient against major international currencies, particularly the US Dollar.
He noted that the local currency appreciated by 2.45 percent in the year ending December 2025. “Currently, the Uganda Shilling is the most stable currency in the world, followed by the UK Pound Sterling and the Hong Kong dollar,” Ggoobi said.
Economists regard currency stability as a key pillar of economic confidence, as it lowers uncertainty for businesses, investors, and households, supports trade and investment decisions, and strengthens governments’ ability to manage economic cycles. Countries with stable currencies are often better positioned to withstand global economic shocks.
Ggoobi said Uganda’s broader economic performance has remained strong despite changes in the global environment and the pressures typically associated with election-year cycles.
He reported that the economy grew by 6.3 percent in the Financial Year 2024/25 and is projected to grow between 6.5% and 7% in the current financial year, with double-digit growth expected in the medium term. As a result of this performance, Uganda’s economy is projected to reach a size of $68.4 billion, equivalent to Shs 249.4 trillion, in the Financial Year 2025/26.
Inflation has also remained subdued, with headline inflation standing at 3.1 percent in both November and December 2025, a trend Ggoobi described as unusual during an election period.
He attributed the stability to deliberate government interventions, including increased investment in food production, tight and effective monetary policy, and the direct importation of fuel by the Uganda National Oil Company. “This stability is a result of strategic government investments in food production, effective monetary policy which has kept the Shilling strong, and direct fuel importation by UNOC, all of which have helped stabilise prices,” Ggoobi said.
He added that Uganda recorded the lowest inflation rate in Africa over the past decade, reinforcing the country’s macroeconomic stability.
On the external sector, Ggoobi said Uganda’s export earnings continued to post strong growth. Exports of goods and services reached $13.4 billion, equivalent to Shs48.2 trillion, in the Financial Year 2024/25, with merchandise exports accounting for $10.6 billion or Shs38.2 trillion.
For the 12 months ending November 2025, exports of goods alone stood at $12.79 billion, equivalent to Shs46.0 trillion, reflecting sustained export performance despite global economic uncertainty.
Uganda’s external position also improved significantly, with the country registering a Balance of Payments surplus of $2.37 billion, or Shs8.5 trillion, for the year ending October 2025. This marked a sharp reversal from a deficit of $683 million, or Shs2.46 trillion, recorded in the previous year. “This is the highest Balance of Payments surplus recorded in the last 15 years,” Ggoobi said, attributing the improvement to an all-time high financial account surplus of $5.6 billion, equivalent to Shs 20.2 trillion.
He said the surplus was driven largely by strong foreign direct investment and portfolio inflows. Foreign direct investment rose to $3.5 billion, or Shs12.6 trillion, while portfolio inflows reached $1.7 billion, equivalent to Shs6.1 trillion over the same period.
Ggoobi also highlighted the growing contribution of the Ugandan diaspora to the economy, noting that remittance inflows increased to $1.6 billion, or Shs5.76 trillion, in the Financial Year 2024/25, up from USD 1.1 billion, or Shs4.0 trillion, in the Financial Year 2020/21.
He said the performance of the Shilling and the broader macroeconomic indicators demonstrated the strength of Uganda’s economic fundamentals and the central role of currency stability in supporting growth, investment, and resilience.