Uganda’s Central Bank chief, Mr Michael Atingi-Ego has cautioned that tampering with Uganda’s financial inflows could trigger serious economic instability, warning lawmakers that foreign reserves are central to national sovereignty.
Appearing before Parliament on the proposed Protection of Sovereignty Bill 2026, the Bank of Uganda Governor stressed that the country’s balance of payments position remains fragile and highly dependent on sustained inflows.
“Chairman, a country without reserves is not sovereign. The potential of this Bill to destabilize Uganda’s balance of payments is our primary concern as a central bank.”
Atingi-Ego revealed that Uganda recorded a balance of payments surplus of USD 1.5 billion in the last financial year, which directly boosted the country’s foreign exchange reserves.
“That’s how we were able to increase our reserve coverage by USD 1.5 billion. Today, as we speak, our reserves are close to USD 6 billion, because these inflows have been coming in.”
He warned that any disruption to these inflows, often driven by foreign investment, aid, and external financing, could quickly reverse these gains.
“The moment you tamper with these inflows, we risk running down our reserves—and that is economic disaster for a country.”
The remarks place the Protection of Sovereignty Bill 2026 under sharper scrutiny, particularly over its potential impact on Uganda’s external financing environment and investor confidence.
