Government of Uganda has approved the Foreign Exchange (Amendment) Bill 2022 that seeks to address emerging issues and significant developments in the currency markets.
The Minister of State for Information, Communication and National Guidance, Godfrey Kabbyanga, said the new Bill seeks to meet demands from sector players to promote Fintechs and embrace regional and global markets developments.
Kabbyanga was announcing the new development following a Cabinet seating last week that approved the Bill.
“Since the enactment of the Foreign Exchange Act 2004, there have been significant developments in the currency markets and demands from the currency sector to review the act. This is because the advent of technological innovation development in East African Community Regional Legal Harmonisation criteria and increasing client sophistication resulted in a shift in the currency market customers’ expectations,” he told journalists during a press conference.
He said the new Bill will address new innovative operational frameworks which are less costly and convenient, know your customer requirements, compliance to anti-money laundering and combating of terrorism financing and increasing the minimum capital requirement among others.
The announcement comes at a time the Bank of Uganda is struggling to keep the Uganda Shilling competitive amid inflation and other effects of the post-covid period.
It should also be noted that Bank of Uganda hasn’t had an institutional head for a year now following the death of former Governor Emmanuel Tumusiime Mutebile.
It is not yet clear when the Institute will get a lead figure head.