Uganda’s foreign exchange market opened the week on a stable note, with the shilling showing only minor depreciation and appreciation against the US dollar, despite it being a festive period often associated with volatility.
Uganda’s foreign exchange market is fully liberalised, allowing currencies to move freely in and out of the country through banks and foreign exchange bureaus.
Mr Richard Nsubuga, Acting Head of Trading at Absa Bank Uganda, said on December 24 that the Uganda shilling remained largely unchanged, trading in a narrow range. It closed at Shs3,605 per US dollar (buying) and Shs3,615 per US dollar (selling) ahead of the Christmas holiday.
Nsubuga said the currency pair opened on December 24, at 3,607/ 3,617, with pockets of dollar selling from commercial banks and commodity exporters, in a session marked by minimal intraday activity.
‘Demand for the hard currency was indeed subdued as most corporates appeared closed for the festive season, which supported the local unit; however, the appreciation remained limited amid the shilling’s bearish sentiment backdrop ahead of Uganda’s General Elections on January 15, 2026,’ he said.
Nsubuga said offshore market players also remained on the sidelines, allowing the local unit to move calmly throughout the day. He noted that the shilling is still expected to trade within the range of 3,575 – 3,625 in the near term.
He further said that money markets remained tight, with interbank overnight and one-week rates averaging 10.27 percent and 10.47 percent, respectively.