Uganda Shilling

Overview

The economy of Uganda has great potential, and it appeared poised for rapid economic growth and development. After the turmoil of the Amin period, the country began a program of economic recovery in 1981 that received considerable foreign assistance.

Economy

• Endowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits, it is thought that Uganda could feed the whole of Africa, if it was commercially cultivated.
• The economy of Uganda appeared poised for rapid growth and development. However, chronic political instability and erratic economic management have caused a persistent decline that has left Uganda among the world’s poorest and least-developed countries.
• The national energy needs have been historically more than domestic energy generation, though large petroleum reserves have been discovered in the west.

History

• In 1966, the first Ugandan Shilling replaced the East African Shilling at par.
• In 1987, following high inflation, a new Shilling was launched with a value of 100 old Shillings.
• The shilling is now a stable currency and predominates in most financial transactions in Uganda, which has a very efficient foreign exchange market with low spreads. The pound sterling, and increasingly the euro, are also used.
• The Bank of Uganda launched redesigned banknotes in May, 2010. The present 1,000- and 5,000-shilling notes incorporate the latest security features and arguably have a longer life through new production processes. In addition, a new note with the value of 2,000 shillings was launched, equivalent to approximately 1 US Dollar.