Across East and West Africa, two currencies are showing fresh signs of strain. Uganda's shilling and Ghana's cedi are both facing renewed pressure, and the reasons behind their slides share a common thread: rising oil prices and heavy dollar demand from importers.
In Uganda, the shilling traded at 3,780/3,790 per dollar on September 3, 2026, weaker than the previous week's close of 3,750/3,760. Reuters flagged further downside risk, pointing to energy importers who keep generating strong demand for hard currency. That's not a new story — the shilling had already slipped to 3,735/3,745 by late July from 3,685/3,695, with Middle East tensions keeping crude prices elevated and adding to the pressure. The Bank of Uganda confirmed the currency weakened by about 4.16% between February and April amid global uncertainty.
There's a silver lining, though. Uganda's foreign reserves stood at $6.1 billion at the end of April, more than 50% above the roughly $4.0 billion seen a year earlier. Still, reserves covered only about four months of imports in March, below the East African Community's 4.5-month target. To manage excess liquidity in the banking system, the central bank raised its cash reserve requirement to 11% from 9.5% in March. Mid-month tax-related dollar demand from large firms adds another layer of pressure on the currency.
Ghana's cedi has had a bumpier ride. The Bank of Ghana said higher oil prices, rising imports, and external payment obligations hit the currency hard in the second quarter. Things improved briefly — the cedi gained 3.3% month-on-month in June after reserve buffers kicked in, following a rough patch in May. The Bank of Ghana has leaned on its regulatory functions in the forex market to help curb excessive volatility during such episodes.
But that recovery didn't last. Reuters reported renewed weakness by August, driven by strong demand from businesses looking to finance imports through the interbank market.
Both currencies illustrate how global energy prices and geopolitical tensions ripple into African economies that rely heavily on imported oil. As long as crude prices stay elevated and importers keep chasing dollars, both the shilling and the cedi face continued pressure. Markets will likely watch reserve levels, central bank interventions, and oil price movements for clues on what comes next.
