The Microfinance State Minister, Haruna Kasolo Kyeyune told Parliament that he has alerted the president on the matter and will respond soon. He also allayed the fears of the legislators, saying all is moving on well in the Central Bank.
The directive follows the expiry of Dr. Louis Kasekende’s contract on 18th January 2020. Dr. Kasekende was serving under Bank of Uganda Governor Prof. Emmanuel Tumusiime Mutebile.
The expiry of his contract completed a decade of his service in the same position and making him the longest-serving deputy governor and Deputy Chairperson of the Bank of Uganda Board.
Last August, Bank of Uganda said the country's capacity to manage its growing public debt will depend on the country's ability to export oil by 2023. This target will mostly depend on how fast government can reach common ground with oil companies.
In a notice, Dfcu publishes 16 branches it has vacated, including the main branch at Kampala road. Others include Hoima branch, Arua branch, Ibanda branch, Ntinda, Mbrara, and Kikuubo, and Kireka branches. In total, the bank took over 48 properties from Crane bank.
According to the 202/2021 financial year National Budget Framework Paper, government indicates that it needs Shillings 481.7 billion to recapitalise Bank of Uganda. The proposal became a subject of contention when the Finance and Planning State Minister, David Bahati appeared before the budget committee to defend the National Budget Framework Paper.
The query is carried in her response to the National Budget Framework Paper for the coming financial year 2020/2021. The government indicated in the framework paper, that up to 482 billion Shillings will be needed to recapitalize the Central Bank next financial year.
Appearing before the Finance Committee on Wednesday chaired by Rubanda East MP Henry Musasizi, the Minister of State for Finance David Bahati was questioned about the continuous recapitalization of the Bank.
In a statement issued on Tuesday, the BoU Governor, Emmanuel Mutebile said: "The public is advised to accept only those notes that bear features as designed by Bank of Uganda."
The government planned to attract more one million tourists this year on top of the 1.8million people received in 2018. But the Central Bank says after ten months, only about 1.2 million tourists had entered Uganda.
Fintech refers to the integration of technology to allow companies provide digital financial solutions that ease transactions with just a tap of a button, through the use of smartphones for mobile banking and investment services, among and others. Fintechs have enabled new business models that offer expanded services to customers and continue to generate new revenue streams for financial service providers.
According to Bank of Uganda, government will withdraw 445billion shillings which will be transferred from the fund to the consolidated fund for government to pay for the 2019/20 financial year budget activities
The central bank says in the report that the increase in the value of the currency in circulation in 2018/19 resulted from increased commercial banks’ withdrawals of banknotes and coins from the central bank. This exceeded the money they deposited there by 272.9 billion shillings.
This means that the governor expects commercial banks to follow suit and cut lending rates which are currently averaging at 21% per annum. The banks would then lend more to businesses thus boosting business activity and growth.
In a letter dated September 2, 2019, BoU acting director of the currency directorate Dr Bazinzi Natamba said the guidelines are intended to mitigate risks and strengthen controls at currency operations
The Bill seeks to amend the Constitution following a resolution by Parliament on 28th February 2019 which sought to remove the Governor and the Deputy Governor from being chairperson and Deputy Chairperson respectively of the board of directors of the Central Bank.
Christopher Makode, the director of Mega Holdings Ltd, who deal in maize exports, told URN that one of the reasons could be that production was low locally last year amidst high demand – especially from schools.
According to BoU Governor Emmanuel Tumusiime-Mutebile, core inflation, which measures the increases in prices of goods and services less electricity, food and water, will peak 6.4% between October and December 2020.
In the report, the Central Bank indicates that Uganda’s public debt stock will grow from current USD 10.74 billion (39 trillion Shillings) to USD 13.4 billion Shillings (49 trillion Shillings) in the 2019/20 financial year. This translates into a rise from 42.2 per cent to 45.7 per cent of GDP in 2019/20.
According to the Bank of Uganda act, the Central Bank Governor who is also the most senior officer in the bank also chairs the board of directors and deputized by the Deputy Governor. The other members are the Secretary to the Treasury and directors from different departments in the bank.
