5 Shillings – Uganda

In 1968, Uganda's currency situation was defined by its recent transition to an independent monetary system following the break-up of the East African Currency Board (EACB). For decades, the EACB had issued a common shilling for Kenya, Tanzania, and Uganda. However, after independence, political and economic tensions led to its dissolution. Uganda introduced its own national currency, the Ugandan shilling, in 1966, and by 1968 the new notes and coins were fully in circulation, symbolizing a key pillar of national sovereignty under President Milton Obote's government.

Economically, the period was one of cautious management but underlying strain. The new Uganda shilling was initially pegged at par with the old East African shilling and to the British pound sterling, aiming for stability. The Bank of Uganda, established in 1966, had assumed central banking functions, controlling issue and foreign reserves. However, the economy faced pressures from falling global commodity prices for its main exports, coffee and cotton, while government expenditure was rising. This created a delicate balance, with authorities working to maintain confidence in the fledgling currency without resorting to drastic devaluation.

Politically, the currency was a tool in Obote's "Move to the Left" policy, which sought greater state control over the economy. The government emphasized self-reliance and viewed an independent central bank as crucial for directing credit towards national development projects. However, this period of relative stability in 1968 was precarious. Within three years, the political turmoil of Idi Amin's 1971 coup would severely destabilize the economy, leading to fiscal indiscipline, plummeting foreign reserves, and the eventual collapse of the currency's value—a stark contrast to the managed, if fragile, system of the late 1960s.