Uganda: Technical Assistance Report-Strengthening Cash Management
IMF Staff Country Reports, September 15, 2017
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- Uganda: Technical Assistance Report-Strengthening Cash Management
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Bibliographic details
- Published: September 15, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484317686.002
Summary and purpose
- Discusses measures to strengthen cash management in Uganda.
- Emphasizes establishing institutional authority and improving operational cash management practices.
Key findings
- The Cash Policy Department (CPD) requires sufficient authority to:
- maintain its relationships;
- constantly improve cash flow forecasts;
- operate active cash management transactions.
- Cash flow forecasting accuracy is currently insufficient for active operations; improvements are required before medium-term operationalization.
- An appropriate cash buffer level has not yet been defined and needs to be calculated to determine necessary money market transactions to smooth government cash operations.
Policy recommendations
- Establish a high-level cash management committee to provide necessary authority to the CPD.
- Strengthen the CPD’s role in:
- maintaining relationships with counterparties and stakeholders;
- continuously improving cash flow forecasts;
- preparing for and operating active cash management transactions once forecasting accuracy permits.
- In the medium term, prepare the CPD for active cash management operations consisting of short-term borrowing and investment.
- Calculate an appropriate cash buffer level to define required money market transactions for smoothing government cash operations.
Operational sequencing and timing
- Short-term: establish governance (high-level cash management committee) and improve forecasting capabilities.
- Medium term: when cash flow forecasting has gained sufficient accuracy, commence active cash management operations (short-term borrowing and investment) and implement calculated cash buffer-based money market transactions.
International Monetary Fund. Fiscal Affairs Dept. "Uganda: Technical Assistance Report-Strengthening Cash Management", IMF Staff Country Reports 2017, 273 (2017), accessed 9/23/2026, https://doi.org/10.5089/9781484317686.002
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- Country Report