Parliament should free BoU from government arm-twisting

The 2010 series of Uganda currency notes in the Bank of Uganda museum. Photo by Rachel Mabala

What you need to know:

  • BoU Governor Tumusiime Mutebile in his November 2014 speech said he would not print money for the 2016 elections.
  • Parliament should investigate BoU’s controversial policies and questionable transactions before opting on one of the home grown long term measures I have sampled.

Although in the Bank of Uganda (BoU) Act 1993 edition, BoU is a corporate entity, the political influence that the bank suffered during Idi Amin Dada has been sighted under the present government like; printing paper money without a financial plan to support government spending spree programmes, and arm-twisting BoU to sanction risky credits to government backed firms which as individual companies hold no bank accounts against which they can access loans. In real terms, BoU is not a commercial bank to do the business of lending money to individuals or business entities. Such acts impinge Article 162 (2) which cushions BoU from the direction or control of any person or authority. In the end, such monetary episodes continue to fuel inflation, poverty and political problems.

Welcome!

You're all set to enjoy unlimited Prime content.