Central Bank - Uganda Multimedia News & Information

Ugandan Bank clients want government audits into the Central and Commercial Banks

Isaac Senabulya — Mon, 21 Aug 2017 10:56:01 +0000

Uganda’s Central Bank

Bank clients in Uganda have called upon government to set up an independent body to conduct a special audit into the operations of the Central Bank and the commercial banks in the country.

The call has been made by the chairperson of the Bank Customers’ Rights Protection Organisation, Nabunya Ntege at a time the central bank is on spot for failure to do its over sight role in operations of most commercial banks.

Nabunya says that many bank customers have had their property fraudulently taken by workers in these banks after they allegedly defaulted on loan repayment.

She argues that the special audit will help foster morals, ethics and integrity in the sector.

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Commercial court wants Bank of Uganda and Sudhir to settle differences with in 60 days

Gerald Businge — Fri, 11 Aug 2017 15:06:45 +0000

Business tycoon Sudhir Ruparelia

The Commercial Court has given Bank of Uganda and Business tycoon Sudhir Ruparelia 60 days within which to amicably settle their differences, failure of which the case file will be forwarded to a Judge for hearing.

On Tuesday this week, the Head of this Court Justice David Wangutusi appointed city lawyer Harriet Magala from Kituuma Magala and company advocates as an arbitrator in this case, where Bank of Uganda accuses Sudhir of siphoning over 700 billion shillings from Crane Bank.

However according to Court Registrar in-charge of mediation matters, Vincent Emmy Mugabo, mediation in this case cannot start unless all the necessary documents and evidence is filed in court by the two warring parties.

He explained that there is a counter claim filed by Sudhir against Bank of Uganda and Crane Bank that has not been responded to by the Central Bank.

Mugabo also elaborated on the mediation process that is now a practice in all civil matters, having been enrolled in courts as an Alternative Dispute Resolution mechanism, mainly to clear case backlog and maintaining relationship between parties.

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Central Bank Rate up by 1% making it 17%

Gerald Businge — Wed, 21 Oct 2015 09:41:09 +0000

The Central Bank raised the lending rate by 1% moving it to now 17% as a way to control the rising inflation in the country’s economy.

Announcing the new CBR yesterday, the central bank governor, Prof, Emmanuel Tumusiime Mutebire said, the bank’s forecasts based on the prevailing domestic and external economic conditions and outlook indicates that inflation will continue to rise over the course of FY 2015/16.

He also says that the exchange rate depreciation experienced over the last 12 months is yet to feed through completely to prices and will therefore continue to put upward pressure on inflation.

‘The BOU’s inflation forecasts based on the prevailing domestic and external economic conditions and outlook indicate that inflation will continue to rise over the course of FY 15/16’.

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Central Bank rate raised to 13%

Gerald Businge — Tue, 16 Jun 2015 13:04:56 +0000

With the continued depreciation of the local currency against the dollar, among other foreign currencies since the beginning of this year, which in turn has caused high inflation on the economy, the Central Bank has deemed it fit to raise the Central Bank Rate (CBR) by 1% point to 13% for the month June 2015 as an intervention to save the shilling and the economy. The comes after the CBR was raised to 12% im the month of April, 2015.

At a news conference in Kampala today, the Central Bank Governor, Prof. Emmanuel Tumusiime Mutebire said the current depreciation of the shilling reflects a global financial condition and a weak balance of payment with the current account deficit projected to widen to 10.3% of GDP in 2015/16 from 8.4% 2014/15. This is on account of higher non oil private sector imports and public infrastructure related imports as well as lower personal transfers and weak exports.

The Governor also warned that the bank will tighten monetary policy further should there be deterioration in inflation outlook.

Other statistics

Inflation continued to rise in may 2015 with Annual core inflation edging up to 4.8% frm 4.6% in April 2015
The rise in core inflation was driven in part by pass through effects of the exchange rate depreciation.
Aggregate demand has improved though exports of goods and services remain depressed, which is a key drag on aggregate demand.
1/2 Real GDP growth is projected at 5.3% for 14/15 and 5.8% for 15/16 driven by higher public investment announced in the budget on a rebound
Pressures on the exchange rate persisted since the beginning of 2014 reflecting global financial conditions as well as weak BOP position
1/2 Indicators of economic activity point to a relatively strong real gross GDP growth in the 4th quarter 14/15 supported by faster growth
The band on the CBR will be maintained at +/-2% points and the margin on the rediscount rate at 3% points on the CBR.
Annual headline inflation also rose in May 2015 to 4.9% from 3.6% in April 15.
The rediscount rate and the bank rate increased to 16% and 17% respectively.

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