The Ugandan shilling remained stable against the US dollar in December 2025, reflecting resilience in the economy even as key sectors, including exports, continue to perform strongly, according to the Performance of the Economy Report for December 2025 from the Ministry of Finance.
“In December 2025, the Ugandan shilling remained relatively stable against the US Dollar, trading at an average mid-rate of Shs 3,575.23/USD compared to Shs 3,575.14/USD in November 2025,” the report states, highlighting minimal fluctuations in the local currency.
This stability comes amid broader signs of economic strength. High-frequency indicators show that economic activity and business sentiment are on the rise. The Purchasing Managers’ Index (PMI) rose to 54.0 in December, up from 53.8 in November, firmly above the 50-point threshold that separates expansion from contraction. Similarly, the Composite Index of Economic Activity (CIEA) continued to increase, reaching 181.48 in November 2025, up from 180.41 in October.
Business confidence also improved, with the Business Tendency Index (BTI) rising to 57.20 in December from 56.20 in November, reflecting “increasing optimism among business operators and investors,” the report notes.
Uganda’s strong export performance further underpinned economic stability. Export earnings jumped 70.4 percent to USD 1,190.51 million in November 2025 from USD 698.46 million a year earlier, primarily due to increased receipts from coffee and gold. This contributed to a 32.4 percent narrowing of the merchandise trade deficit, which fell from USD 343.7 million in November 2024 to USD 232.3 million in November 2025.
Headline inflation remained unchanged at 3.1 percent in December, supported by moderation in core and services inflation, which offset increases in food and energy prices.
The Ministry of Finance says the combination of a stable currency, strong exports, and rising business confidence demonstrates the resilience of Uganda’s economy as it heads into 2026.
