## 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](https://www.imf.org/en/publications/cr/issues/2018/01/16/uganda-technical-assistance-report-monetary-and-foreign-exchange-operations-recapitalization-45563)

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## Bibliographic details
- Published: January 16, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484337813.002

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### 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.*

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- **Country Report**
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_Source: https://www.imf.org/en/publications/cr/issues/2018/01/16/uganda-technical-assistance-report-monetary-and-foreign-exchange-operations-recapitalization-45563_