Bank of Uganda assets increase to Shs23.5 trillion

Bank of Uganda assets grew by 17 per cent to Shs23.5 trillion for the year ended June 2021 up from Shs20.17 trillion as of June 2020.
In details contained in the Bank of Uganda 2021 annual report, the Central Bank indicated that during the period ended June 2021, foreign assets accounted for 75 per cent of total assets while domestic assets accounted for 25 per cent. 

During the period, foreign assets increased by 4 per cent to Shs17.6 trillion compared to Shs16.9 trillion as of June 2020 due to an increase in net inflows from donor and project funds.
 Domestic assets increased by 82 per cent to Shs5.8 trillion from Shs3.2 trillion due to recapitalisation securities received from government amounting to Shs481.7b.
 
 During the period, the report indicates, Bank of Uganda realised total income of Shs529.1b, which was, however, a decline from Shs678.7b realised in the same period ended 2020 due to a fall in interest income by 9 per cent from Shs423.5b to Shs386.2b while non-interest income reported a 44 per cent decline from Shs255.1b to Shs142.9b. 
The report also indicates that operating expenditure, including interest expense, during the period decreased by 14 per cent to Shs571.4b compared to Shs665.8b in the year ended 2020. 

Expenditure on implementation of monetary policy amounted to Shs195.7b, which was a reduction from Shs230.1b spent during the period ended 2020.
 Monetary policy costs were significantly lower during the period due to reduction in Central Bank Rate (CBR) from an average of 8.92 per cent during the 2019/20 financial year to an average of 6.96 per cent.