Uganda’s currency has fallen more than 11% against the US dollar so far this year, prompting the central bank to call an emergency policy meeting amid mounting pressure on the shilling.
Uganda’s central bank has called for an emergency Monetary Policy Committee (MPC) meeting for Wednesday as the country’s currency continues to weaken sharply against the US dollar.
The Ugandan shilling has been under pressure since August and has hit repeated all-time lows this month. The currency has depreciated by more than 11% against the dollar so far in 2026, according to Reuters.
The Bank of Uganda has not directly intervened in the foreign exchange market to slow the shilling’s decline. The central bank has maintained that it does not target a specific exchange rate but uses a range of instruments to manage excessive volatility in the currency market.
The emergency meeting comes amid sustained pressure on the shilling, raising questions about the central bank’s next steps to address the currency’s weakness. However, the central bank has not publicly outlined any specific measures it plans to discuss at Wednesday’s meeting.
A weakening currency can increase the cost of imports, particularly fuel and other goods priced in dollars, potentially adding to inflationary pressures. It can also raise the domestic cost of servicing foreign-currency debt.
The shilling’s continued depreciation presents a challenge for policymakers as they seek to maintain stability in the foreign exchange market without committing to defending a particular exchange rate.
More from BusinessThe outcome of Wednesday’s MPC meeting will be closely watched for indications of the central bank’s policy response and whether it plans to deploy additional tools to contain excessive currency volatility.
