Uganda shilling named world’s most stable currency

Uganda’s shilling has ranked as the world’s most stable currency, beating the US dollar, the UK pound and the Hong Kong dollar, the government has said.

The shilling gained 2.45 per cent in the year ending December 2025, helped by low inflation, firm budget controls and government action in food and fuel markets, according to Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury.

“Right now, the Uganda shilling is the most stable currency in the world,” Ggoobi said during a third-quarter budget briefing in Kampala.

He said the economy remained strong despite global shocks and election-year pressure.

Economic growth reached 6.3 per cent in FY2024/25. It is expected to rise to between 6.5 and 7 per cent this financial year. Government projects the economy will grow to $68.4 billion, about Shs249.4 trillion, in FY2025/26.

Ggoobi said inflation stayed at 3.1 per cent in November and December 2025. He said this was unusual in an election year, when prices often rise.

He added that Uganda has recorded Africa’s lowest inflation over the past decade.

Ggoobi linked the price stability to higher food production, sound monetary policy and direct fuel imports by Uganda National Oil Company, which reduced the impact of global oil prices.

He also said tight spending controls in the third quarter of FY2025/26 supported the shilling. Government spending stayed within available funds while paying for election activities, security and key services.

The assessment supports earlier remarks by Patrick Ayota, the managing director of National Social Security Fund.

Speaking at the Uganda–UAE Business Forum, Ayota said the shilling’s rise against the dollar over five years showed strong economic fundamentals.

“If you brought $10,000 into Uganda five years ago and changed it back today, you would have $695 more,” he said.

Ayota said the gains came from stable policies, a free-floating exchange rate and no foreign exchange controls.

He said investors can move money in and out freely, which reflects confidence in the economy.

Over the same period, currencies such as the Egyptian pound and South African rand weakened sharply against the dollar, leaving Uganda as a rare case of stability.