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Investing.com -- Uganda’s foreign exchange reserves have increased by about one-third over the past year, according to a senior finance ministry official.
Ramathan Ggoobi, Permanent Secretary at the finance ministry, told a press conference on Tuesday that gross reserves stood at $4.3 billion in June, equivalent to 3.8 months of import cover. This marks an increase from $3.2 billion in June 2024.
While Ggoobi did not explain the reasons behind the rise in reserves, a March report on the state of the economy by the central bank indicated it had stepped up foreign exchange purchases to boost reserves.
"The bank has also employed various tools, including foreign exchange swaps and cross-currency repos and plans to start gold purchases to diversify reserves in 2025," the central bank stated in its March report.
The increase in reserves reverses a downward trend that had previously been flagged as a concern by the central bank.
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