Uganda: Technical Assistance Report-Monetary and Foreign Exchange Operations, Recapitalization, and Act Revision
IMF Staff Country Reports, January 16, 2018
Source details
- Canonical URL
- Uganda: Technical Assistance Report-Monetary and Foreign Exchange Operations, Recapitalization, and Act Revision
Other formats
Bibliographic details
- Published: January 16, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484337813.002
Key findings
- 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.
- Institutional and operational arrangements are not sufficiently robust and conducive to an efficient monetary operations framework.
- Market development is hindered by lack of anchored short-term interest rates and limited use of fine-tuning instruments to manage short-end volatility.
- The Bank of Uganda (BOU) needs to raise the effectiveness of the monetary and foreign exchange operations framework to strengthen transmission of policy signals across the curve.
Policy recommendations
- Enhance monetary and fiscal policy coordination to improve overall policy effectiveness.
- Strengthen institutional and operational arrangements to ensure they are robust and conducive to an efficient monetary operations framework.
- Raise the effectiveness of the BOU’s monetary and foreign exchange operations framework.
- Anchor short-term interest rates by using various fine-tuning instruments to:
- Improve operational efficiency.
- Strengthen transmission of policy signals across the curve.
- Foster further market development through improved operational tools and market infrastructure.
Subjects and keywords (as provided)
- Subjects: 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
International Monetary Fund. Monetary and Capital Markets Department "Uganda: Technical Assistance Report-Monetary and Foreign Exchange Operations, Recapitalization, and Act Revision", IMF Staff Country Reports 2018, 010 (2018). January 16, 2018.
Content in this bundle
- Country Report