The Uganda Shilling has emerged as the world’s most stable currency, outperforming major currencies such as the U.S. dollar, the British pound, and the Hong Kong dollar. This impressive feat highlights Uganda’s economic resilience despite global challenges, including volatility in emerging markets and the election-year pressures faced by many countries.
Shilling’s Performance and Economic Resilience
According to Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, the Uganda Shilling appreciated by 2.45% in the year ending December 2025. This stability has been driven by low inflation, disciplined fiscal management, and strategic government interventions in key sectors like food and fuel. Ggoobi proudly stated that Uganda’s currency outperformed global peers, with only the UK pound and Hong Kong dollar following behind in stability rankings.
Key Factors Driving Stability
Uganda’s strong economic performance is a key driver behind the Shilling’s stability. The country’s GDP growth reached 6.3% in FY2024/25, with projections ranging between 6.5% and 7% for the current financial year. This growth trajectory, alongside expected double-digit growth in the medium term, positions Uganda as a stable economy in a period of global uncertainty.
Chief among the factors contributing to the Shilling’s performance is the government’s effective control over inflation. In November and December 2025, Uganda recorded an inflation rate of 3.1%, remaining relatively stable despite the typical inflationary pressures associated with election cycles. Ggoobi attributed this to sound monetary policy, direct fuel imports by the Uganda National Oil Company (UNOC), and investment in local food production.
Macroeconomic Management and Investor Confidence
The government’s tight control over spending, especially in sectors like security, health, education, and infrastructure, has also helped maintain financial stability. According to Patrick Ayota, Managing Director of the National Social Security Fund (NSSF), the Shilling’s appreciation over the past five years is a testament to Uganda’s strong macroeconomic fundamentals and increasingly liberalized financial environment.
Ayota further emphasized that Uganda’s growing credibility among global investors is reflected in the currency’s steady performance. He pointed out that an investment of $10,000 in Uganda five years ago would now yield $695 more upon conversion, underlining the long-term stability of the Shilling.
Outperformance of Regional Currencies
While the Uganda Shilling has thrived, many regional currencies, such as the Egyptian pound and South African rand, have weakened against the U.S. dollar. This divergence highlights Uganda’s exceptional currency performance in the African context, reinforcing its position as an outlier in regional currency stability.
