Uganda’s official curency is the Uganda Shilling. The first Ugandan shilling (UGS) replaced the East African shilling in 1966 at par. Following high inflation, a new shilling (UGX) was introduced in 1987 worth 100 old shillings.
The shilling is now a stable currency and dominates in most financial transactions in Uganda and which has a very efficient foreign exchange market with low spreads. The United States dollar is also widely accepted, he pound sterling and increasingly the euro are also used.
The Bank of Uganda launched new redesigned banknotes earlier in May 2010. The present 1.000, 5.000, 10.000, 20.000 and 50.000 Uganda Shilling notes have been given a makeover, incorporating not only the latest security features but also arguably given the notes a longer life span through new production processes. In addition, a new note with the value of 2,000 Uganda Shillings was also launched by the Bank of Uganda.
Coins
First shilling
In 1966, coins were introduced in denominations of 5, 10, 20 and 50 cents and 1 and 2 shillings. The 5, 10 and 20 cent coins were struck in bronze with higher denominations struck in cupro-nickel and the 2 shilling issued that year. In 1972, cupro-nickel 5 shilling coins were issued but later withdrawn from circulation are now very rare. In 1976, copper-plated steel replaced bronze in the 5 and 10 cent and cupro-nickel-plated steel replaced cupro-nickel in the 50 cent and 1 shilling. In 1986, nickel-plated-steel 50 cent and 1 shilling coins were issued; they are the last coins of the first shilling.
Second shilling
In 1987, cupro-nickel-plated-steel 1 and 2 shilling and stainless-steel 5 and 10 shilling coins were introduced with the 5 and 10 shilling curved-equilateral heptagonal in shape. In 1998, coins for 50, 100, 200 and 500 shillings were introduced. Denominations currently circulating are 10, 50, 100, 200 and 500 shillings.
Banknotes
First shilling
In 1966, the Bank of Uganda introduced notes in denominations of 5, 10, 20 and 100 shillings. In 1973, 50 shilling notes were introduced, followed by 500 and 1000 shillings in 1983 and 5000 shillings in 1985.
Second shilling
In 1987, notes were introduced in the new currency in denominations of 5, 10, 20, 50, 100 and 200 shillings. In 1991, 500 and 1000 shilling notes were added, followed by 5000 shillings in 1993, 10,000 shillings in 1998, 20,000 shillings in 1999, 50,000 shillings in 2003 and 2000 shillings in 2010. Banknotes currently in circulation are 1000, 2000, 5000, 10,000, 20,000 and 50,000 shillings. In 2005, the Bank of Uganda was considering whether to replace the low value notes such as the 1000 shilling with coins. The lower denomination notes take a battering in daily use, often ending up dirty, dogb eared and usually disintegrating faster.In 2012,Bank of Uganda introduced 1000 coin which is now in circulation.