SINKHOLE? Of BoU’s UGX2 trillion losses and why MPs want the central bank’s excessive independence curbed BoU in the last 15 years has made losses of UGX2 trillion (USD545 million). In FY2018/19 alone, according to its annual report, the bank reported a loss of UGX859.2 billion. In FY2020/21 government plans to inject another UGX481.7bn bringing the total amount of capital to UGX1.6 trillion.

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A number of Members of Parliament sitting on the Budget Committee are against Government’s recapitalisation of the Central Bank unless the central bank explores other monetary policy tools beyond the trading in securities that have turned loss making. The MPs who include: Butambala County Hon Muwanga Kivumbi and Dokolo Woman Mrs Cecilia Ogwal in their minority report of the Budget Committee o