1. Pre-Independence Legacy: East African Shilling
Prior to independence, Uganda used the East African Shilling, managed by the East African Currency Board (EACB) based in London. This currency served Uganda, Kenya, Tanzania, and some adjacent territories, backed principally by sterling reserves Wikipedia.
2. Birth of the Ugandan Shilling (1966)
In 1966, with the formation of the Bank of Uganda, Uganda replaced the East African Shilling with its own currency—the first Ugandan Shilling (UGS)—issued at par with the previous. Initial denominations included coins (5, 10, 20, 50 cents; 1 and 2 shillings) and banknotes (5, 10, 20, 50, 100 shillings), signaling national identity and monetary autonomy archive.bou.or.ugMonitorliganda.ch.
3. Currency Redesigned through Political Regimes (1973–1986)
Political shifts influenced the design of Uganda’s currency:
- 1973: Following Idi Amin’s rise to power, notes gained a portrait of Amin; denominations remained similar archive.bou.or.ugMonitor.
- 1979: After Amin’s fall, currency was updated—Amin’s portrait replaced by the Bank of Uganda building archive.bou.or.ug.
- 1982–1983: Under Milton Obote’s return to power, new notes added 500 and 1,000 shillings, featuring Obote’s portrait archive.bou.or.ug.
- 1985–1986: Obote’s portrait was replaced with the national emblem and map of Uganda, and a 5,000 shilling note introduced archive.bou.or.ug.
Each design progression reflected significant shifts in Uganda’s political landscape.
4. Revaluation and the Second Ugandan Shilling (1987)
In 1987, facing hyperinflation and economic instability, the government launched a currency reform: two zeros were removed (100 old shillings → 1 new shilling), with an effective devaluation of nearly 75%. The reform included an exchange tax of 30%, aiming to simplify everyday transactions and curb inflationary pressures Monitorliganda.ch.
5. Denomination Expansion & Phased Withdrawals (1990s–2000s)
As inflation persisted, higher denominations were introduced:
- 1995: 10,000 shilling note issued.
- 1999: 20,000 shilling note introduced.
- 2000: Low-value notes (5 to 500 shillings) were demonetized; new coins (50–500 shillings) and notes (1,000 & 5,000 shillings) circulated archive.bou.or.ugMonitorbanknoteworld.orgliganda.ch.
- 2001–2006: Security and material upgrades:
- 2001: New 1,000‑shilling note with embedded thread and latent image.
- 2004–2005: Upgraded 5,000 and 10,000‑shilling notes with color-shifting ink and improved paper.
- 2003: Introduction of the 50,000‑shilling note.
- 2006: Enhanced 10,000‑shilling note issued archive.bou.or.ug.
6. Harmonized Design & Advanced Security (2010)
May 2010 marked a pivotal redesign: all denominations (1,000 to 50,000 shillings) adopted a harmonized visual theme depicting cultural heritage, natural wonders, and national symbols such as basketry, the Independence Monument, and a Karamojong headdress. Notably, they featured Uganda’s first SPARK optical security technology, making Uganda the first African nation to use it on regular banknotes Wikipediabanknoteworld.org.
7. Currency Code & Subunit Changes
- With the 1987 revaluation, the currency code shifted from UGS (1st shilling) to UGX (2nd shilling) The Eye Magazine Directory.
- The shilling was once divided into 100 cents, but cents were formally dropped in 2013 due to low value and inflation banknoteworld.orgThe Eye Magazine Directory.
8. Public Education and Numismatic Heritage
To bolster public understanding of banknote security and authenticity, the Bank of Uganda campaigns regularly educate citizens on checking features like watermarks and threads. The C.N. Kikonyogo Money Museum in Kampala also preserves Uganda’s monetary history, showcasing everything from colonial-era coins to modern designs ugfacts.netBank of UgandaWikipedia.
9. Summary Timeline
| Year | Key Milestone |
|---|---|
| Pre‑1966 | Use of East African Shilling via EACB |
| 1966 | First Ugandan shilling issued (coins & notes) |
| 1973–1986 | Design changes under Amin and Obote regimes |
| 1987 | Revaluation to 2nd shilling; de-monetization of zeros |
| 1995–1999 | Introduction of 10k & 20k notes; low-value notes phased out |
| 2000s | Security and material upgrades to higher-denomination notes |
| 2010 | Harmonized design with SPARK security features |
| 2013 | Subdivision into cents dropped |
Today’s Ugandan currency narrates a story of sovereignty, adversity, and innovation. From the early years of independence to modern, secure designs, each note and coin reflects Uganda’s evolving identity and resilience.
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