Financial Markets

Overview

  1. The Forex Market

  2. Foreign exchange Policies in Uganda Over the years 

  3. Domestic Financial Markets

  4. Functions of Securities Markets

  5. Types of Treasury Bills used in Uganda   

Related Pages

Financial Markets in Uganda

Uganda implemented a variety of foreign exchange regimes as follows:

1966-1971

A par value of 0.124414 gram of gold per Uganda shilling was maintained.

1971-1975

Shilling-US dollar pegged at Shs. 7.14286 per dollar.

1975-1980

Shilling-SDR pegged at Shs. 9.66 per dollar.

1981

The Shilling floated.

1982

Dual exchange rate regime. The foreign exchange was auctioned through a system known as Window 1 and Window 2. Window 1 was for financing priority imports and the rate was determined daily considering the value of the dollar against other currencies and the economic conditions in the country. Window 2 was for financing non-priority imports.

1986

The auction system was replaced by allocation based on a rate of Shs.1,470 per a dollar. That same year the dual exchange rate was re-introduced at a fixed rate of Shs. 1400 per dollar.

1987

In May 1987 the shilling was devalued by 66% from shs. 14 to 60. This was after the currency reform.

1993 to date

The current and capital accounts were fully liberalized. Bank of Uganda has since implemented a floating exchange rate regime.

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