The researchers used different models to study the volatility of USD/UGX exchange rates from 2005 to 2018. They found that the PARCH (1,1) model with GED distribution was the best at capturing the volatility patterns. This model showed significant asymmetries, clustering of volatility, and leverage effects. For forecasting, the EGARCH (1,1) model with GED distribution was preferred. The study suggests that Uganda should make macroeconomic and fiscal adjustments to stabilize its political environment based on these findings.