In a remarkable economic achievement, the Uganda shilling has been named the world’s most stable currency, outperforming major global currencies such as the U.S. dollar, pound sterling, and the Hong Kong dollar. This milestone reflects the country’s strong economic performance, underpinned by disciplined fiscal management and strategic interventions by the government.
Ramathan Ggoobi, Uganda’s Permanent Secretary and Secretary to the Treasury, highlighted this success during a budget performance briefing on January 9, 2026. He reported that the shilling appreciated by 2.45% in 2025, defying global economic turbulence and providing a significant boost to Uganda’s economic credibility.
“The Uganda shilling is the most stable currency in the world, followed by the UK pound and Hong Kong dollar,” said Ggoobi, emphasizing the country’s exceptional position in a volatile global market. He credited this achievement to Uganda’s low inflation rate, effective fiscal controls, and the government’s interventions in food and fuel markets.
Resilience Amid Global Volatility
While many emerging markets face rising inflation and currency depreciation, Uganda has continued to show remarkable resilience. The country’s Gross Domestic Product (GDP) grew by 6.3% in FY2024/25, with a forecasted growth rate between 6.5% and 7% for the current financial year. This consistent growth is expected to push Uganda’s economy to a projected size of $68.4 billion (Shs 249.4 trillion) by FY2025/26.
One of the key factors contributing to the shilling’s stability is the government’s ability to maintain a steady inflation rate. Despite the pressures typical of an election year, Uganda’s inflation remained steady at 3.1% in November and December 2025, a remarkable achievement for any economy in such a cycle.
Strategic Government Interventions
Ggoobi attributed the shilling’s stability to several strategic government measures. These include investments in food production, direct fuel imports through the Uganda National Oil Company (UNOC), and tight expenditure controls that have insulated the economy from global oil price shocks.
Additionally, the government’s decision to maintain strict fiscal discipline, especially during the third quarter of FY2025/26, has played a crucial role. While the government ensured adequate funding for election-related activities and security, it also maintained investments in infrastructure, health, and education, further strengthening the economy.
A Model of Economic Management
The Uganda Shilling’s success has attracted the attention of global investors, with some experts praising Uganda’s liberalized financial environment. Patrick Ayota, Managing Director of the National Social Security Fund (NSSF), noted that the shilling’s strength is a reflection of sound macroeconomic management and an increasingly attractive investment climate.
“Investors can move capital freely in and out of Uganda, contributing to the long-term stability of the currency,” Ayota remarked at the 4th Uganda-UAE Business Forum. He also pointed out that if investors had exchanged $10,000 into shillings five years ago and converted it back today, they would have gained an additional $695.
This flexibility, coupled with a free-floating exchange rate, has positioned Uganda as an economic leader in the region, with many African currencies, such as the Egyptian pound and South African rand, weakening significantly against the dollar.
The Uganda shilling’s emergence as the world’s most stable currency is a testament to the country’s economic resilience and prudent management. As Uganda continues to grow and attract global investors, the stability of its currency provides a solid foundation for future development, even amidst global economic uncertainty. With government efforts focused on stability, infrastructure, and wealth creation, Uganda is well-positioned to maintain its strong economic performance in the coming years.