Ugandan Shilling Appreciates Against US Dollar Amid Remittance Boost

The Ugandan shilling has shown signs of appreciation against the US dollar in July this year. The currency's average mid-rate appreciated by 0.2% to trade at sh3,704.51 per dollar compared to sh3,710.64 recorded a month earlier.

This appreciation was mainly driven by increased foreign exchange inflows from remittances, portfolio investments, and export earnings from agriculture, mining, and energy sectors.

The weighted average lending rate on Ugandan shilling-denominated credit fell from 18.00% in May 2026 to 16.93% a month later due to lower risk premiums on loans following continued improvement in economic activity.