The report reveals increased currency printing costs and soaring mobile money transactions
The Auditor General and the Board of the Bank of Uganda have approved the Central Bank’s annual report for the fiscal year 2022/23. The report sheds light on key highlights, including a significant increase in the expenditure on printing and issuance of new currency, as well as a remarkable surge in mobile money transactions and registered customers.
Currency Printing Costs Soar
The Bank of Uganda reported that a substantial sum of Shs199.3 billion was allocated for the printing and issuance of new currency in Uganda for the financial year 2022/23.
This figure marks a notable increase from the Shs172.3 billion spent in the previous fiscal year, 2021/22. The surge in expenditure can be attributed to the increased issuance of new currency to meet the growing demands of the economy.
According to the report, currency issuance costs grew by 16% year-on-year, highlighting the Central Bank’s efforts to keep up with the rising demand.
Currency Circulation and Economic Activity
The report also reveals that the net value of banknotes in circulation experienced a substantial increment, rising by Shs477 billion, from Shs6.6 trillion in June 2022 to Shs7.1 trillion in June 2023.
Additionally, the value of coins in circulation increased by Shs9.9 trillion during the same period. This remarkable increase in currency circulation can be attributed to the demand for cash, which has surged in response to increased economic activity. The data suggests a thriving economy and heightened transactions in the country.
Mobile Money Transactions Soar
Another noteworthy finding from the report is the significant growth in mobile money transactions. The report indicates that as of June 30, 2023, the value of mobile money transactions increased from Shs156 trillion in June 2022 to Shs191.3 trillion. This notable surge reflects a 22.6% increase in mobile money transactions year-on-year.
Additionally, the number of registered mobile money customers rose to 42.9 million, marking an 11.4% increase from 38.5 million in June 2022. The rise in both transaction value and customer numbers showcases the growing reliance on mobile money services in Uganda’s financial landscape.
The Bank of Uganda’s annual report for 2022/23 provides a detailed look into the country’s financial landscape, highlighting the increased costs of currency issuance and the significant growth in mobile money transactions.
These findings offer valuable insights into Uganda’s evolving economic activity and financial services sector, which will undoubtedly influence policymaking and financial planning in the coming years.