• Banking & Currency

Banking & Currency

Overview

Banking Department

BOU fulfills three of its eleven functions through the Banking Department.

These functions are carried out under the mandate of the Bank of Uganda Act 2000 section 4(2) namely:

(i) 4(2)(d) be the banker to the Government

(ii) 4(2)(h) be the banker to financial institutions

(iii) 4(2)(i) be the clearing house for cheques and other financial instruments for financial institutions.

Department Mission

To provide excellent banking and clearing services to our customers.

 

Currency Department

Bank of Uganda has the sole right to issue bank notes and coins in the country; thus it shall be the only legal tender in Uganda. Its key role is to also gain and maintain public confidence in the currency. Subsequently, Currency department is responsible in the designing and ordering of banknotes and coins to meet the country’s demand; this is one of the main functions of the department. Bank of Uganda is also a banker for commercial banks and the government. It provides a safe and convenient place to store money and also maintain minimum reserves requirements.

Currency Management

The Department has an objective to ensure that clean money policy is achieved by making sure that all regions are supplied by clean banknotes and coins. The Bank has nine branches namely Kampala, Jinja, Mbale, Mbarara, Masaka, Fortportal, Kabale, Gulu and Arua. Bank of Uganda Head Quarters is in Kampala where the Bank supplies clean banknotes and coins while the collected unserviceable currencies are destroyed.

It is the responsibility of the department to ensure that there is always an adequate stock of banknotes and coins available in all denominations and that there is a good distribution system to reach the various sectors of the Ugandan economy.

Reproducing Currency

It must be noted that the circulation and printing of banknotes is the responsibility of Bank of Uganda. The law grants the Bank the exclusive right to issue banknotes. The Bank is also the holder of the copyright thereto. Counterfeiting and even possession of counterfeit banknotes are punishable by law.