In a significant announcement, Ramadhan Ggoobi, Uganda’s Permanent Secretary and Secretary to the Treasury, revealed that the Uganda Shilling has been ranked as the most stable currency in the world, surpassing major global currencies such as the UK Pound Sterling and the Hong Kong Dollar. The statement, made during the Quarter Three Press Briefing for the Financial Year 2025/26, highlighted the Shilling’s resilience against international currencies, particularly the US Dollar.
The shilling (Swahili: shilingi; abbreviation: USh; ISO code: UGX) is the currency of Uganda. Officially divided into cents until 2013, due to substantial inflation the shilling now has no subdivision.
The first Ugandan shilling (UGS) replaced the East African shilling in 1966 at par. Following high inflation, a new shilling (UGX) was introduced in 1987 worth 100 old shillings.
The shilling is usually a stable currency and predominates in most financial transactions in Uganda, which has a very efficient foreign exchange market with low spreads. The United States dollar is also widely accepted. Sterling and increasingly the euro are also used.
The Bank of Uganda cut its policy rate to 22% on 1 February 2012 after reduction of inflation for 3 consecutive months.
Ggoobi confirmed that the Uganda Shilling had appreciated by 2.45 percent during 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,” he stated. This stability has been essential for businesses, investors, and households, as it reduces uncertainty and supports economic confidence.
Economists regard currency stability as a key pillar of economic confidence. It helps lower risks for trade and investment decisions, making countries with stable currencies better positioned to withstand global economic shocks. Ggoobi also reported that Uganda’s economy grew by 6.3 percent in the 2024/25 Financial Year, and is projected to grow between 6.5% and 7% in the current financial year, with expectations of double-digit growth in the medium term.
Ggoobi attributed the Shilling’s stability to deliberate government actions, such as increased investment in food production, tight monetary policies, and direct fuel importation by the Uganda National Oil Company (UNOC). These interventions have not only helped stabilize the currency but also kept inflation rates subdued at 3.1% in November and December 2025, a rare occurrence during an election year.
The economic performance is further highlighted by the country’s strong export earnings. Uganda’s exports reached $13.4 billion in the 2024/25 Financial Year, with a significant contribution from merchandise exports, which accounted for $10.6 billion. The strong performance of Uganda’s exports continued through November 2025, with exports alone reaching $12.79 billion.
Additionally, Uganda’s external position improved significantly, recording a Balance of Payments surplus of $2.37 billion for the year ending October 2025. This marked a remarkable reversal from a deficit of $683 million in the previous year and was driven by high foreign direct investment and portfolio inflows.
The Ugandan diaspora also played a pivotal role in supporting the economy, with remittance inflows rising to $1.6 billion in 2024/25, up from $1.1 billion in the 2020/21 period. This increasing contribution from the Ugandan diaspora reinforces the importance of currency stability and its role in Uganda’s overall economic resilience.
