Browsing: Bank of Uganda

• Uganda’s diaspora remittances have seen 13.4% jump, reaching $1.42 billion.
• Remittances continue to outshine foreign direct investment and official development assistance as the primary source of external finance for low and middle-income countries.
• Economies are leveraging diaspora remittances through innovative financial instruments such as diaspora bonds and policies aimed at financial inclusion to enhance their impact on development.

Diaspora remittances from Ugandans living and working abroad increased by 13.4 per cent in the 12 months ending January 2024. This surge, as reported by the Bank of Uganda’s Executive Director of Research, Mr. Adam Mugume, highlights the increasing role of diaspora inflows in the nation’s economy, reaching $1.42 billion, up from the previous $1.25 billion.

Such growth underscores the essential contribution of the Uganda’s diaspora remittances amidst a challenging global financial landscape.

Globally, remittances have emerged as a critical source of external finance for low- and middle-income countries (LMICs), overshadowing foreign …

Uganda’s Central Bank noted that easing of lockdown put in place as a measure to prevent the spread of covid-19 has led to economic growth recovery.

The Bank of Uganda in its latest monetary policy statements said that economic growth recovery has been supported by the easing of lockdown, a feeble improvement in both foreign and domestic demand as well as the stability of the exchange rate.

The government of Uganda started easing restrictions on some parts of the economy which had been affected by the pandemic in may.

Uganda’s Central Bank forecasts that the 2020/2021 financial year will see some growth of between 2.0-3.0 per cent which could increase to up to 6.0 per cent in 2021/22. The growth estimated before the pandemic which was of more than 6 per cent is forecast to be attained after 2022.

The 9 pm to 6 am curfew still remains in place …

The Bank of Uganda held its benchmark interest rate yet in an effort to keep inflation down and below target and to support economic growth.

The central bank rate (CBR) was kept unchanged at 9 per cent, initially set in October 2019 and maintained in December. The band on the CBR was maintained at positive or negative 3 percentage points while the rediscount rate remained at 13 per cent and the bank rate remained 14 per cent.

“The evaluation of the macroeconomic developments and outlook based on the available information set suggests that, at the current CBR, the monetary policy stance is accommodative and that inflation will converge to target in the medium term while supporting economic growth,” said the monetary policy statement explaining the decision.

The Bank said that Uganda’s economy is expected to expand at between 5.5 and 6 per cent in the 2019 fiscal year, which runs …