Stanbic Bank Uganda has won the Bank of Uganda (BoU) award for ‘Best-performing Primary Dealer Market Maker (PDMM) for 2022, becoming the first to earn the honour for a record 11 times, since its inception eighteen years ago. “Primary Dealing” refers to a commercial bank directly buying government securities from the central bank and retailing them to the rest of the market (secondary market) to help raise revenues to support government spending. In 2005, BoU launched the primary dealer (PD) system to promote participation and operational efficiency in the government securities market, improve secondary market trading and foster financial market…
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The Commercial Court’s Hon Justice Stephen Mubiru has dismissed an application by the Bank of Uganda to drop a case brought against it by 31 shareholders of the defunct Greenland Bank for wrongful and fraudulent closure and sale of the bank. “The application is incompetent in as far as it concerns matters of facts majorly that require evidence and investigation by this Court which cannot be dealt with as preliminary points of law. The suit is neither barred by limitation, res judicata nor is it frivolous and vexatious,” Justice Mubiru ruled. Bank of Uganda took over Greenland Bank on 1st…
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Twenty-four (24) years, after Bank of Uganda, seized and sold the assets of the Co-operative Bank, the mystery of the ownership of the bank that was sold remains unresolved. This has led to another unresolved question of which Cooperative Bank was sold since it appears there were two Cooperative Banks- one, a cooperative society and the other a private limited liability company. This is even as shareholders of seven banks, including Co-operative Bank which were found by a Parliamentary inquiry, to have been closed illegally and irregularly by the Bank of Uganda wait for the perpetrators to be brought…
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CFAO Motors Uganda Limited (formerly Toyota Uganda), won a deal to supply 11 vehicles to the Bank of Uganda, beating MAC East Africa Ltd to the lucrative UGX3,254,008,582 deal. CFAO Motors is the exclusive manufacturer-authorised distributor of brand-new Toyota vehicles and genuine parts in Uganda, as well as the exclusive offerer of Toyota manufacturer’s warranty. Mac East Africa, on the other hand, offers a wide range of Isuzu vehicles, including pickups, SUVs, trucks, and buses. According to the best-evaluated bidder notice, dated December 29, 2022, posted on the central bank’s website, Mac East Africa failed the technical evaluation stage as…
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Bank of Uganda has released the list of 18 shortlisted external audit firms that will audit supervised financial institutions in 2023. Section 62 (1) of the Financial Institutions Act (FIA) 2004 and Section 30 (2) of the Microfinance Deposit-taking Institutions Act 2003 and the External Auditor Appointment Guidelines for Forex Bureaus and Money Remitters (2016), Bank of Uganda is mandated to pre-qualify and publish a list of External Auditors for Commercial Banks, Credit Institutions and Microfinance Deposit-taking Institutions and Forex Bureaus. The selected firms were chosen after a process that started in September 2022. According to a Bank of Uganda,…
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In consultation with the Bank of Uganda, the Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija, on 16th November 2022 signed a statutory instrument increasing minimum capital requirements for banks by 6 times or 500% from UGX25 billion (USD6.7 million) to UGX150 billion (approx USD40.2 million). The increment will however be tiered, starting with a minimum capital buffer of UGX120 billion (USD32.2 million) by the 31st of December 2022 and then UGX150 billion by the 30th of June 2024. Capital requirements for non-bank institutions were also increased by 25 times or 1900% from UGX1 billion (USD268,000) to UGX25…
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Uganda’s Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija, on 16th November 2022 signed a ministerial instrument, increasing the minimum capital requirements for banks by 6 times or 500%. Capital requirements for non-bank institutions have also been increased by 25 times or 1900%. Uganda had not changed its minimum capital requirements since 2010 According to the Financial Institutions (Revision of Minimum Capital Requirements) Instrument, 2022, a copy of which this writer has seen, minimum capital requirements for commercial banks have been increased from UGX25 billion (USD6.7 million) to UGX 150 billion (approx USD40.2 million) by 30th June 2024….
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The Uganda shilling continued on its strengthening trend joining a global rally amid weakness of the dollar. In the local market there was a general slump in demand while supply was mildly enhanced by end month flows mainly from exports . The unit was quoted at 3735/45. In the regional markets, the Kenya shilling was on the back foot trading at a new all time low of 122.20/40 on increased demand from the energy sector. In the fixed income market a treasury bill auction with 285 billion on offer was held. Yields remained relatively flat with BOU seen suppressing yields…
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The shilling traded flat on the back of thin import appetite underpinned by low business activity. Supply was boosted by cyclical remittances. The unit held at 3740/50. In the neighboring Kenya, the currency hit a fresh new low, undermined by huge dollar demand from manufacturing and energy sectors. KES was quoted at 121.85/122.05. In the global markets, the US dollar held ground as markets tried to make sense out of mixed US economic data. The greenback had tumbled in recent weeks on inflation and comments from the Federal Reserve signaling that the Central Bank could put brakes and slow the…
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The Uganda shilling continued to beat expectations and maintained a bullish stance supported by remittances and charities. The unit threatened to break lower the support level of 3750. In the fixed income market, a treasury bill auction with UGX285 billion on offer was held. Yields remained flat with Bank of Uganda cutting off outlier bids. The market bidding behavior reflects a return premium for the greater uncertainty over government fiscal situation. In the global markets, the dollar languished, losing significant value against many of its rivals following weaker than expected US CPI lowering expectation for aggressive Fed rate hikes going…
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