The Bank of Uganda has launched a new guide that shows how much it costs to borrow dollars using shillings. It is called the Uganda FX Swap Curve, and it will help banks, businesses and investors understand the market better.
“The Uganda FX Swap Curve is a reference benchmark derived from quotations submitted by commercial banks. Actual transaction prices may vary depending on prevailing market conditions, liquidity and other commercial factors,’ the central bank said in a statement.
“The introduction of the Uganda FX Swap Curve marks an important milestone in the development of Uganda’s financial market infrastructure. By improving pricing transparency and providing a credible benchmark for foreign currency funding, the curve will support more efficient markets, strengthen price discovery, enhance informed decision-making by market participants, and contribute to the continued development and resilience of Uganda’s financial system.”
What it means
Think of it like a price chart for money. It tells people the cost of swapping one currency for another at different times, from overnight to one year.
Why it matters
The new guide will make prices clearer and help people make better decisions. It will also help banks and companies know whether they are paying a fair price when dealing in foreign currency.
How it works
The Bank of Uganda worked with commercial banks and the London Stock Exchange Group to create it. Banks will send their figures every business day, and the Bank will publish the guide daily on its website as part of the Daily Money Market Report.
If a bank wants dollars today but promises to return them later, this new chart helps show the cost of that deal. The Bank says the numbers are only a guide, so the real price can still change depending on the market.
