Naira in circulation increases by 87% in 6 months to 2.6 trillion

In an effort to shield businesses from unanticipated global shocks, Uganda has finally begun implementing stiffer requirements on capital injection for financial institutions. The restrictions themselves, however, may wind up acting as a disincentive to investors who perceive the new requirements as being excessively onerous.The regulations stipulate that commercial banks must now keep at least Ush150 billion ($40.7 million) in capital, up from Ush25 billion ($6.8 million), and the Ministry of Finance began enforcing them this month. According to the administration, the limits are the result of conversations that began in 2021, at the height of the COVID-19 outbreak. Additionally, officials claim that increasing capital is necessary to increase financial players' resilience in the face of difficult economic conditions brought on by the commencement of the Russia-Ukraine war. The widespread pessimism among affluent people and lenders, however, makes it difficult for many investors to get substantial sums of money from capital markets, according to financial specialists. In Uganda, various economic sectors saw single-digit growth rates in 2022, which appears to emphasize serious geopolitical event spillover consequences