Makerere University Economic Policy Research Centre

Ugandans have stashed record amounts of cash in banks, an indicator Ugandans feared to spend their money with the coronavirus uncertainty still hovering around. Bank of Uganda data shows that in May 2020, the amount that Ugandans had in banks as term deposits reached UGX8.5 trillion, the highest amount ever held there in a single month. Term deposits also referred to as fixed deposits are where one puts their money in the bank for a specified time and earn interest on it. Withdrawing the money before a specified time means one forfeits the promised interest which is currently between 4…