Uganda’s FX reserves surged 56% in year ended June, central bank says

Uganda’s foreign exchange reserves surged 56% year-on-year in the year to June, the central bank said, adding that it also intends to boost gold purchases in the fiscal year ending in June 2027 to further diversify the reserves.

• The East African’s country reserves rose to $6.7 billion in the 12 months to June, from $4.3 billion in the previous period, the bank said on Monday.
• “These gains reinforced confidence in Uganda’s macroeconomic position and external-sector resilience,” the bank said in its report.
• It added it would also continue its recently introduced gold purchase program in the 2026/27 financial year to expand diversification of the reserves.
• The new reserves level is equivalent to 3.7 months of future import cover, the bank said, but still below its target cover of four months.
• The higher reserves could potentially help cushion the shilling, which has weakened sharply in recent weeks to fall through a series of all-time record lows.
• The central bank says it will not intervene since it does not target a particular exchange rate level but only aims to smooth out any volatility in the market.

Source: Marketscreener