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US dollar dominates Uganda’s external debt currency composition
This photo taken on September 8, 2023 shows US dollars. PHOTO/AFP
What you need to know:
- Uganda’s finance ministry says the Euro is the second dominant currency on government external debt, accounting for 32.88 per cent (which is Euros 4.53 billion).
The US dollar has continued to dominate the currency composition of Uganda’s external debt, standing at 48.42 per cent, which translates into about $6.68 billion.
According to the annual debt statistical bulletin and public debt portfolio analysis for June 2023, the Ministry of Finance said Uganda’s public debt continues to rise.
“…as such, total public stock increased by 10 per cent ($2.25 billion), from $20.97 billion as at June 2022 to $23.22 billion as end of June 2023. The domestic debt increased by $1.27 billion from $8.2 billion in June 2022 to $9.4 billion in June 2023,” the bulletin released in September suggests.
The Ugandan government mainly uses four major currencies in compiling external debt and these include the US dollars, Euro, Chinese Yuan Renminbi and the Japanese Yen.
Uganda’s finance ministry says the Euro is the second dominant currency on government external debt, accounting for 32.88 per cent (which is Euros 4.53 billion)
This indicates an increase of 3.32 percentage points during the FY2022-23.
“It is attributed to increased disbursement of Euro 500 million from Standard Bank South Africa (SBSA) during the same FY for budget support,” the finance ministry explained.
The Japanese Yen constitutes 5.51 per cent, which translates to 0.76 billion, Yuan Chinese Renminbi is 5.39 per cent, which equals to 0.74 billion.
In the category of other currencies, dominance stood at 7.8 percent, which is 1.08 billion composed of different international legal tenders.
Commenting bulletin’s data, the finance ministry’s acting director for debt and cash policy, Maris Wanyera said: “This 33rd edition of the Debt Statistical Bulletin (SSB) is a testament to our commitment towards transparency in debt management.”
“It also embodies our dedication to providing the public with periodic and up to date information on our national debt,” she emphasized.
Uganda’s Permanent Secretary/Secretary to Treasury, Ramathan Ggoobi acknowledged that “reliable and up-to-date debt statistics are essential for informed decision-making by governments, investors, international financial institutions and the general public.”
“Quarterly production of DSBs is in line with not only the reporting of the Debt Management Performance Assessment (DeMPA), but also the mutually agreed Policy Performance Actions (PPAs) for FY2022/23, 2023/24 of the World Bank, demonstrating our adherence to international best practice,” he remarked.
Ggoobi added: “The DSB serves as a strategic tool that aids in fostering a deeper understanding of our national debt landscape.”
