Uganda Shilling Ranked Africa’s Most Stable Currency by IMF

The Ugandan Shilling has continued to show remarkable strength in 2025, earning recognition as Africa’s most stable currency according to the International Monetary Fund (IMF).

In July 2025, the shilling appreciated by 0.5%, moving from UGX 3,606 to UGX 3,586 per US dollar. This performance was largely supported by foreign direct investment inflows, strong remittances from Ugandans abroad, steady export earnings, especially coffee, and a weaker US dollar on the global market.

Resilience in a Challenging Global Economy

Uganda’s ability to maintain a stable currency comes at a time when many economies across the continent are struggling with depreciation pressures. Analysts attribute the performance to prudent economic management, increased forex inflows, and growing investor confidence.

“The shilling’s stability sends a positive signal to investors and businesses. It shows resilience and consistency, which is crucial for long-term planning and trade,” said an economist familiar with the IMF’s findings.

Boost for Businesses and Consumers

A stronger and more stable shilling reduces import costs, cushions businesses against currency shocks, and supports lower inflation. For exporters, particularly in agriculture, the steady exchange rate provides predictability when negotiating trade deals.

Looking Ahead

With Uganda set to expand oil and gas production, alongside continued growth in tourism and manufacturing, the outlook for the shilling remains positive. If supported by sustained investment and disciplined fiscal policy, the currency is expected to maintain its strong footing.

The recognition by the IMF is not just a win for Uganda’s financial sector but also a vote of confidence in the wider economy. It positions the country as a competitive and reliable investment destination in Africa.