Uganda: Technical Assistance Report-Monetary and Foreign Exchange Operations, Recapitalization, and Act Revision

January 16, 2018

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Format: Chicago

Uganda: Technical Assistance Report-Monetary and Foreign Exchange Operations, Recapitalization, and Act Revision, (USA: International Monetary Fund, 2018) accessed November 21, 2024

Summary

This Technical Assistance Report discusses the findings and recommendations made by the IMF mission regarding monetary and foreign exchange operations in Uganda, Bank of Uganda (BOU) recapitalization, and Bank of Uganda Act revision. The presence of sizable precautionary and involuntary reserves and excessive short-end volatility has weakened the transmission mechanism in Uganda. The key challenge remains to enhance monetary and fiscal policy coordination and to ensure that institutional and operational arrangements are robust and conducive to efficient monetary operations framework. The BOU should raise the effectiveness of the monetary and foreign exchange operations framework. To foster further market development there is need to anchor short-term interest rates by using various fine-tuning instruments to ensure improved operational efficiency and strengthen transmission of policy signals across the curve.

Subject: Asset and liability management, Banking, Central banks, Financial institutions, Financial statements, Liquidity, Liquidity forecasting, Open market operations, Public financial management (PFM), Securities

Keywords: Balance sheet, BOU recapitalization securities, Capital structure, CR, Exchange rate, Financial market, Financial statements, Foreign exchange, Global, Interest rate, ISCR, Liquidity, Liquidity forecasting, Open market operations, Reverse repo, Securities, Short term

Publication Details

Pages:

76
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/010
Stock No:

1UGAEA2018002
ISBN:

9781484337813
ISSN:

1934-7685

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