Research preview

Uganda’s foreign‑exchange reserves jumped 56 % year‑on‑year to $6.7 billion in the 12 months to June 2026, up from $4.3 billion a year earlier. The central bank’s plan to buy more gold in the 2026/27 fiscal year adds a new layer of diversification. For quantitative traders, the macro shift offers both a backdrop for currency‑related models and a reminder of micro‑structure nuances such as order‑book depth and execution risk. Macro Context and Quantitative Implications The surge in reserves signals a strengthening balance sheet for the Bank of Uganda. A larger reserve pool typically reduces currency volatility, because the central bank can intervene more aggressively to smooth out supply‑demand imbalances....