Executive Summary

This report presents a professional analytical review of the Depository Corporations Survey for Uganda covering the period from Dec 2001 to Jan 2026, with refined reporting focused on Jan 2015 to Dec 2025. The analysis was conducted through an automated R Markdown workflow that imports the raw Excel file, cleans and restructures the data, generates summary indicators, and produces publication-ready charts and tables.

The results show broad-based monetary expansion over the recent reporting period. Among the main aggregates, Net Domestic Assets (NDA) recorded the strongest cumulative increase at 311.12%, while Broad Money-M3 reached the highest ending value at 50,809. The growth profile also indicates that Net Foreign Assets was the most volatile in year-on-year terms, showing that not all monetary components expanded at the same pace or with the same stability.

In terms of composition, the structure of monetary aggregates remained consistent but informative. On average, transferable deposits accounted for 59.98% of M1, narrow money accounted for 58.14% of M2, and M2 accounted for 71.79% of M3. This suggests that local-currency monetary components dominate the broad money structure, although foreign currency deposits still make a meaningful contribution to M3.

1. Introduction

The Depository Corporations Survey provides a structured view of balance-sheet developments within the depository corporations sector. It is useful for tracking liquidity conditions, deposit behavior, domestic credit expansion, and the foreign asset position of the financial system.

This report has four main aims. First, it transforms the raw Excel data into a clean and analysis-ready structure. Second, it organizes individual indicators into major monetary components. Third, it summarises the main patterns in the data through tables and figures. Fourth, it provides interpretation suitable for inclusion in a professional Word report without exposing the underlying code.

2. Analytical Approach

The analysis followed a structured workflow:

The resulting workflow is automated and reproducible. Whenever a new file with the same structure is used, the report updates automatically.

3. Description of Main Monetary Components

3.1 Net Foreign Assets (NFA)

Net Foreign Assets represent the foreign asset position of the depository corporations sector. In this dataset, NFA covers the total foreign position and selected subcomponents such as the central bank net position, official foreign assets, and the net foreign position of other depository corporations.

3.2 Net Domestic Assets (NDA)

Net Domestic Assets represent domestic sources of monetary expansion. They include domestic claims, claims on government, claims on other sectors, lending to the private sector, and balancing items such as other items net.

3.3 Monetary Aggregates

The money supply aggregates are hierarchical:

  • M1: narrow money, mainly currency outside depository corporations and transferable deposits;
  • M2: M1 plus other local currency deposits;
  • M3: M2 plus foreign currency deposits.

Together, these indicators help explain changes in liquidity and broad monetary conditions.

4. Data Coverage and Structure

The cleaned analytical dataset contains 7,540 monthly observations across 26 indicators. The full time span runs from Dec 2001 to Jan 2026.

Table 1. Classification of indicators by monetary component
component indicator
M1 Currency Outside Depository Corporations
M1 Narrow Money-M1
M1 Transferable Deposits-Local Currency
M2 Broad Money-M2
M2 Other Deposits-Local Currency
M3 Broad Money-M3
M3 Foreign Currency Deposits
NDA Claims on Central Government
NDA Claims on Central Government(net)
NDA Claims on Other Sectors
NDA Consolidation Adjustments
NDA Domestic Claims
NDA Less Liabilities to Central Government
NDA Net Domestic Assets (NDA)
NDA Of which: Loans
NDA Other Financial Corporations
NDA Other Items(Net)
NDA Other Items(net)
NDA Private Sector
NDA Public Non Financial Corporations
NDA Shares and Other Equity
NDA State and Local Government
NFA Central Bank(net)
NFA Net Foreign Assets
NFA Of Which: Official Foreign Assets
NFA Other Depository Corporations(net)

The table above confirms that the dataset is organized into the main monetary blocks required for the analysis. This structure supports both aggregate-level interpretation and more detailed component analysis.

5. Trend Analysis of Major Monetary Indicators

5.1 Main Monetary Aggregates Over Time

Figure 1. Main monetary aggregates over time

Figure 1. Main monetary aggregates over time

The figure shows that all main monetary aggregates followed a long-term upward trend. Broad Money-M3 remained above the other aggregates throughout the period, which is expected because it includes M2 and foreign currency deposits. Broad Money-M2 and Narrow Money-M1 also increased steadily, reflecting sustained monetary deepening over time. Net Domestic Assets and Net Foreign Assets both expanded, although their trajectories were less smooth than those of the money supply aggregates.

5.2 Money Supply Aggregates: M1, M2 and M3

Figure 2. Trend of M1, M2 and M3

Figure 2. Trend of M1, M2 and M3

The money supply chart highlights a stable ranking of M3 above M2 and M2 above M1 across the full series. This indicates internal consistency in the monetary aggregates and suggests that broad liquidity growth was accompanied by increases in both local-currency and foreign-currency deposit components.

5.3 Indicators by Monetary Component

Figure 3. Indicators grouped by monetary component

Figure 3. Indicators grouped by monetary component

Viewing the series by component provides a clearer analytical picture than plotting all indicators together on a single scale. The M1, M2, and M3 panels show broad and persistent expansion. The NDA panel shows that domestic claims and sectoral lending items increased strongly, while some offsetting items remained negative. The NFA panel indicates growth in the foreign asset position, though with more visible fluctuations than the monetary aggregates.

6. Analysis of Net Foreign Assets and Net Domestic Assets

6.1 Net Foreign Assets and Subcomponents

Figure 4. Net foreign assets and selected subcomponents

Figure 4. Net foreign assets and selected subcomponents

Net Foreign Assets display a general upward trend over time, suggesting a strengthening foreign asset position in the depository corporations sector. However, the movement is not uniform. The subcomponents indicate that part of the variation comes from changing official foreign assets and changes in the net position of other depository corporations. This pattern suggests that the external side of the financial system has grown, but with greater sensitivity to shifts in foreign asset and liability conditions.

6.2 Net Domestic Assets and Subcomponents

Figure 5. Net domestic assets and subcomponents

Figure 5. Net domestic assets and subcomponents

Net Domestic Assets increased substantially over the sample period, supported mainly by the rise in domestic claims and claims on other sectors, especially the private sector and loans. At the same time, some balancing items remained negative, showing that not all domestic balance-sheet movements reinforced expansion. Overall, the chart suggests that domestic liquidity growth was strongly associated with the expansion of domestic credit.

7. Seasonal and Average Patterns

7.1 Average Annual Value by Component

Figure 6. Average annual value by monetary component

Figure 6. Average annual value by monetary component

The annual averages confirm a broad long-term expansion across all major components. M3 recorded the highest annual levels, followed by M2 and M1. NDA and NFA also increased over time, although with more uneven year-to-year movement. This reinforces the conclusion that the depository corporations sector experienced sustained monetary expansion over the period under review.

7.2 Average Monthly Pattern by Component

Figure 7. Average monthly pattern by component

Figure 7. Average monthly pattern by component

The monthly average profiles help identify recurring seasonal tendencies. While the monthly pattern is descriptive rather than causal, the figure suggests that some components exhibit mild recurring monthly variation. Such patterns may reflect seasonal business activity, deposit behavior, government transactions, or reporting cycles.

8. Growth Analysis

8.1 Year-on-Year Growth of M1, M2 and M3

Figure 8. Year-on-year growth of M1, M2 and M3

Figure 8. Year-on-year growth of M1, M2 and M3

Year-on-year growth remained mostly positive, although the rate of growth changed over time. This indicates that monetary expansion was persistent but not constant. Periods of stronger and weaker annual growth likely reflect changing macro-financial conditions, shifts in credit demand, deposit mobilization, and broader policy or market developments.

8.2 Month-on-Month Growth of M1, M2 and M3

Figure 9. Month-on-month growth of M1, M2 and M3

Figure 9. Month-on-month growth of M1, M2 and M3

Month-on-month growth is visibly more volatile than year-on-year growth, which is expected because short-run monthly changes are more sensitive to temporary movements. This view is useful for spotting short-term liquidity surges, reversals, and unusually sharp monthly adjustments.

9. Refined Reporting Period: 2015–2025

The refined analysis focuses on the period from Jan 2015 to Dec 2025, which is more suitable for professional reporting and recent trend assessment.

9.1 Summary of Main Aggregates

Table 2. Summary of main monetary aggregates, 2015–2025
indicator start_date end_date start_value end_value absolute_change percent_change avg_value min_value max_value avg_yoy_growth
Net Domestic Assets (NDA) Jan-2015 Dec-2025 6,823 28,050 21,227 311.12% 15,327 6,517 29,997 16.43%
Broad Money-M2 Jan-2015 Dec-2025 11,024 37,887 26,863 243.68% 21,198 10,815 37,887 11.77%
Narrow Money-M1 Jan-2015 Dec-2025 6,569 22,178 15,608 237.6% 12,299 6,256 22,178 11.59%
Broad Money-M3 Jan-2015 Dec-2025 15,427 50,809 35,382 229.36% 29,286 15,269 50,809 10.95%
Net Foreign Assets Jan-2015 Dec-2025 8,604 22,759 14,155 164.53% 13,959 8,604 22,759 7.14%

The summary table shows that all major aggregates expanded strongly between 2015 and 2025. Net Domestic Assets (NDA) recorded the highest cumulative growth at 311.12%. Meanwhile, Broad Money-M3 reached the highest level by the end of the period, standing at 50,809. These findings indicate that the overall monetary system expanded substantially over the decade, with the strongest acceleration occurring in the domestic side of the balance sheet and in broad money.

9.2 Composition of M1, M2 and M3

Table 3. Average composition shares of M1, M2 and M3, 2015–2025
aggregate component_1 avg_share_component_1 component_2 avg_share_component_2
M1 Transferable Deposits-Local Currency 59.98% Currency Outside Depository Corporations 40.02%
M2 Narrow Money-M1 58.14% Other Deposits-Local Currency 41.86%
M3 Broad Money-M2 71.79% Foreign Currency Deposits 28.21%

The composition table indicates that M1 is slightly more deposit-driven than cash-driven, as transferable deposits account for 59.98% of M1 on average. M2 is composed of 58.14% narrow money and the remainder in other local-currency deposits. M3 is dominated by M2, which contributes 71.79% on average, while foreign currency deposits account for the remaining share. This confirms that local-currency monetary components continue to dominate broad money, although foreign-currency deposits remain an important supplementary component.

9.3 Main Monetary Aggregates, 2015–2025

Figure 10. Main monetary aggregates, 2015–2025

Figure 10. Main monetary aggregates, 2015–2025

The refined chart confirms strong upward movement in the main monetary aggregates in recent years. Broad money continued to expand steadily, while NDA and NFA also rose, though with different volatility profiles. This suggests that both domestic and external factors contributed to recent monetary growth.

9.4 Indexed Growth of Main Aggregates

Figure 11. Indexed growth of main aggregates (Jan 2015 = 100)

Figure 11. Indexed growth of main aggregates (Jan 2015 = 100)

The indexed series make relative growth easier to compare by placing all indicators on a common base. This figure shows that the aggregates did not grow proportionally at the same rate. Some components expanded much faster relative to their 2015 levels, pointing to structural differences in the sources of monetary expansion.

9.5 Year-on-Year Growth of Main Aggregates

Figure 12. Year-on-year growth of main aggregates, 2015–2025

Figure 12. Year-on-year growth of main aggregates, 2015–2025

The year-on-year growth chart confirms that the pace of expansion varied over time. Among the main aggregates, Net Foreign Assets showed the highest volatility in annual growth. This indicates that while long-term expansion was clear, short- and medium-term growth conditions were less stable for some components than for others.

9.6 Selected Drivers of NDA and NFA

Figure 13. Selected drivers of NDA and NFA, 2015–2025

Figure 13. Selected drivers of NDA and NFA, 2015–2025

This figure helps explain the sources of recent movement in NFA and NDA. The domestic side is closely associated with growth in domestic claims, while the foreign side reflects continued expansion in the total foreign asset position. The contrast between these panels suggests that recent monetary developments were influenced by both domestic credit dynamics and external balance-sheet conditions.

10. Conclusion

The analysis shows that Uganda’s depository corporations indicators experienced strong long-term expansion, especially in broad money and net domestic assets. The structure of money supply remained internally consistent, with M3 exceeding M2 and M2 exceeding M1 throughout the period. The results also show that the domestic side of the balance sheet was a major driver of expansion, while the foreign asset position strengthened but remained more volatile.

From a reporting perspective, the automated R Markdown workflow is suitable for repeated use because it cleans the raw file, updates tables and charts automatically, hides all technical code from the final Word output, and presents the results in a professional narrative format.

11. Output File

The cleaned recent dataset and summary tables are exported automatically to the Excel file below when the report is knitted:

C:/Users/hp/Downloads/Depository_Corporations_Tables_and_Graphs.xlsx