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The Bank of Uganda has warned Parliament against passing into law The Protection of Sovereignty Bill, 2026 in its current form arguing that it will lead to economic sabotage through weakening of Uganda’s shilling, reduce financial inflows and make it hard for Uganda to service its public debt.
BoU Governor, Atingi-Ego says, “a country without reserves is not sovereign.The potential of this Bill to destabilize Uganda’s balance of payments is our primary concern as a central bank.
The moment you tamper with these inflows, we risk running down our reserves, and that is economic disaster for a country,”
For example, last financial year the overall balance of payment surplus was USD 1.5 billion. That’s how we were able to increase our reserve coverage by USD 1.5 billion. Today as we speak our reserves are close to USD 6 billion. Why? Because these inflows have been coming in.
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