Uganda’s foreign exchange reserves have risen by $139.5 million, following improvements in the country’s overall balance of payment. This brings it closer to the benchmark set by the East African Community for monetary stability.
In its Monetary Policy report of February 15, the Bank of Uganda said that the overall balance of payments resulted in a surplus of $139.9 million in the quarter ended December 2016, leading to a net build-up in reserves of $139.5 million.
“The stock of reserves at the end of December 2016 was $3.02 billion (4.5 months of future imports of goods and services),” said the executive director of research at BoU, Adam Mugume.
EAC requires its members to have reserves that can keep the economy going for at least four months in line with international trade obligations.
Dr Mugume said that increased earnings from coffee exports have boosted the country’s foreign exchange reserves.