KAMPALA, UGANDA — The Uganda shilling opened the week on a firmer footing, closing Monday’s trading session at Shs3,925/3,935 against the US dollar, compared with the day’s opening rate of Shs3,930/3,940.
Market traders attributed the shilling’s performance to subdued demand for hard currency, coupled with pockets of foreign-exchange inflows from commodity exporters and charitable organisations.
However, the local currency remains exposed to depreciation pressures.
Richard Nsubuga, a market analyst and trader, said the shilling could come under pressure from offshore investor demand and continued uncertainty surrounding the conflict in the Middle East.
“Nonetheless, the shilling remains susceptible to depreciation pressures stemming from offshore investor demand and ongoing uncertainties related to the Middle East conflict,” Nsubuga said.
Meanwhile, money markets remained liquid, according to Absa, with overnight funding rates averaging 9.42 percent.
Activity in the secondary market was relatively subdued, although pricing maintained a firmer bias, with offers generally improving as most market participants opted to remain on the sidelines.
The Bank of Uganda is scheduled to conduct a Treasury bond auction on September 23, with a new 15-year bond set to be issued alongside reopenings of the benchmark 2-year, 5-year and 25-year bonds.
The auction is expected to provide another important point of focus for investors and participants in Uganda’s financial markets as the shilling begins the new trading week on a firmer note.
Forex Rates — September 21, 2026
| Currency | Buying (UGX) | Selling (UGX) |
|---|---|---|
| 🇺🇸 USD | 3,930.24 | 3,940.24 |
| 🇬🇧 GBP | 5,259.05 | 5,275.59 |
| 🇪🇺 EUR | 4,512.31 | 4,524.58 |
| 🇰🇪 KES | 30.34 | 30.46 |
| 🇹🇿 TZS | 1.48 | 1.50 |
| 🇿🇦 ZAR | 241.65 | 242.30 |
Source: Forex rates provided for September 21, 2026 and New Vision
