Latest news with #NationalBankofRwanda
Business Insider
24-06-2025
- Business
- Business Insider
Rwanda moves to ban illegal dollar trade as new currency law takes effect
Rwanda has introduced strict regulations to curb the unauthorized use of foreign currencies in local transactions, particularly the US dollar. Rwanda has implemented stringent regulations to prohibit unapproved local use of foreign currencies, particularly the US dollar. The National Bank of Rwanda (NBR) imposes fines of Rwf 5 million and Rwf 10 million for initial and repeated violations, respectively. The policy aims to strengthen the Rwandan Franc and ensure economic stability by combating informal dollarization. The National Bank of Rwanda (NBR) says it will impose significant penalties on businesses and individuals who quote prices, issue invoices, or conduct trade in US dollar and other foreign currencies without official approval. The crackdown on foreign currency use in Rwanda prohibits displaying prices in foreign currencies on websites, accepting foreign currency payments from local customers, and referencing foreign currency values during domestic sales negotiations. Businesses must use Rwandan Francs for local transactions. Exceptions include import and export transactions, as well as authorized foreign exchange transactions with special permission from the National Bank of Rwanda. According to the NBR, pricing goods or services in foreign currency without permission will attract a fine of Rwf 5 million for the first instance and Rwf 10 million for subsequent instances. Rwanda's currency law: Who's affected The regulation, announced by NBR Governor Soraya M. Hakuziyaremye applies to individuals and entities engaging in foreign currency pricing, transactions, or auctions without prior authorization. This includes businesses quoting prices in foreign currencies on websites, issuing invoices in foreign currencies to local customers, and referencing foreign currency values during sales negotiations. There are exemptions for payments linked to imports and exports, as well as transactions by specific businesses like hotels, casinos, duty-free shops, tourism agencies, and international schools, but only when dealing with non-residents. Long-term stability for African currencies According to the NBR, the crackdown is part of a broader effort to reinforce the use of the Rwandan franc in the national economy, stabilize monetary policy, and combat informal dollarization, which undermines the central bank's control over inflation and exchange rates. " The use of foreign currencies in the domestic market without authorization poses a risk to the economy. It reduces the effectiveness of our monetary tools and creates distortions in pricing and competitiveness," an NBR spokesperson said. The enforcement comes at a time when Rwanda is positioning itself as a financial and trade hub in the East African region. Apart from Rwanda, other African countries like Nigeria and Tanzania have also introduced legislation to curb the illegal use of foreign currencies in domestic transactions. Tanzania issued its laws in May, banning the use of foreign currencies for buying and selling goods and services within the country. The Bank of Tanzania (BoT) announced the measure, reiterating that all domestic transactions must be carried out in Tanzanian shillings. In Nigeria, the Senate introduced a bill last year seeking to prohibit the use of foreign currencies for payments and transactions within the country. The proposed legislation, aimed at ensuring that all payments—including salaries and business transactions—are conducted in naira, seeks to eliminate discriminatory practices and strengthen confidence in the local currency.
Coin Geek
23-05-2025
- Business
- Coin Geek
Ghana, Rwanda, Singapore launch cross-border payments scheme
Getting your Trinity Audio player ready... Ghana, Rwanda, and Singapore have partnered to launch a new cross-border payments system that will enable smooth and cost-effective transfer of funds across African nations. Known as the Next-Gen Digital Payment Infrastructure, the new system is a collaboration between the Bank of Ghana (BoG), the National Bank of Rwanda (NBR), and the Global Financial Technology Network (GFTN), an initiative by the Monetary Authority of Singapore (MAS) to expand the nation's fintech ecosystem globally. Formally known as Project 54, the system was unveiled at the 3i Africa Summit 2025 Policy Forum in Accra. In his presentation at the event, BoG Governor Johnson Asiama noted that the new system will accelerate interoperability across the continent's financial systems, easing the movement of value. 'This initiative aims to modernise Africa's cross-border payment ecosystem through a central bank-led, innovation-enabled approach co-developed with fintechs and financial institutions,' he stated. Africans have long endured very high charges and slow transactions when moving funds across the region, even between nations that share borders. A majority of cross-border transactions are settled in Western currencies, especially the U.S. dollar, requiring a network of correspondent banks that drive up the costs. While payments within Africa have been tedious and expensive for decades, little has been done to improve them. This is mainly due to the low intra-African trading, which leads governments to focus on solutions that cater to payments with other regions. In 2023, only 15% of the continent's total trading volume was intra-African; in stark contrast, intra-regional trade in Asia stood at 60%, while the EU's was 70%. The new project aims to change this and provide 'a seamless, trusted and efficient cross-border payment system,' stated John Rwangombwa, the governor of Rwanda's central bank, in a speech earlier this year. 'This project is designed to challenge this narrative by creating a system that facilitates instant, low-cost, and secure payments across African borders. This initiative is not just about the technology; it is about economic empowerment, financial resilience, and ensuring that Africa's digital economy is built on an infrastructure that meets the needs of businesses and individuals alike,' he added. Ghana's Asiamah concurred, noting that Africa's future lies in being a unified yet dynamic economic bloc where value moves smoothly across borders. He noted that financial technologies and digital assets have proven that Africans can send money across borders in minutes and at a fraction of the cost and that the interest in such systems is high. Asiamah further pointed out that Africa has become a global leader in mobile money, and this leadership must translate into other financial systems. The latest industry report by GSMA revealed that Sub-Saharan Africa hit $1.1 trillion in transaction value last year, accounting for over two-thirds of all global mobile money value. The region also hit 80 billion transactions, which was 74% of the global volume. Economic research is crucial to advancing digital payments: Rwanda's central bank In Rwanda, the central bank has reiterated the need to conduct economic research to support the development of digital payments in the East African nation. Speaking during the recent Annual Research Conference in Kigali, Deputy Governor Justin Nsengiyumva lauded the progress the country has made in recent years in making digital payments inclusive, resilient, and accessible. It all wouldn't have been possible without the dedicated work that the country's researchers have engaged in, he added. 'In this rapidly evolving environment, economic research becomes indispensable. It enables us to deepen our understanding of the drivers behind the transformation in payment systems and their broader economic implications,' stated Nsengiyumva. Rwanda's digital payments have skyrocketed over the past six years, with the country's National Strategy for Transformation (NST1), which was inaugurated in 2018, being credited for the growth. According to Nsengiyumva, digital payments hit 300% of gross domestic product (GDP) last year against a target of 80%. He also noted that financial inclusion is now at 96%. However, the Rwandan regulator admitted that the country still faces some challenges in digital payments. 'Challenges such as ensuring data protection and privacy, strengthening cybersecurity, achieving seamless interoperability, and designing regulatory frameworks that balance innovation and system stability must continue to be addressed,' he stated. Watch: Tech redefines how things are done—Africa is here for it title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Reuters
15-05-2025
- Business
- Reuters
Rwanda central bank holds its key rate, sees inflation within target
KIGALI, May 15 (Reuters) - Rwanda's central bank held its policy rate (RWREPO=ECI), opens new tab at 6.5% in a decision announced on Thursday. Governor Soraya Hakuziyaremye told a press conference that the level of the Central Bank Rate was adequate to keep inflation within the bank's target while continuing to support economic growth. "Our inflation is projected to stay around 6.5% for the rest of the year and expected to decline to 3.9% in 2026. Nevertheless, risks to this outlook remain, and these include risking trade uncertainty and geopolitical tensions," she said. It was the third monetary policy meeting in a row the National Bank of Rwanda has kept the policy rate unchanged. Annual inflation eased to 6.3% year on year in April from 6.5% a month earlier, within the central bank's 2%-8% target range.
Zawya
25-03-2025
- Business
- Zawya
Rwandan franc battered by East African countries currency peers
The Rwandan franc (Rwf) has been battered by its East African peers as a result of sustained low production and a widening trade deficit. The National Bank of Rwanda (BNR) said in data released on Wednesday that the Rwf depreciated by 32.75 percent against the Kenyan shilling in 2024, in contrast to the 6.89 per cent appreciation recorded in 2023. The franc also depreciated by 12.85 percent against the Tanzanian shilling, following a 9.78 percent loss in 2023. The central bank data also showed that the franc weakened by 5.37 percent and 12.73 percent against the Burundian franc and the Ugandan shilling, respectively.'The Rwf's higher depreciation against the Kenyan shilling in 2024 was driven by increased foreign exchange inflows into Kenya, monetary policy adjustments, the Kenyan government's Eurobond buyback, and foreign exchange market reforms,' said the central bank statement. It said the Ugandan shilling strengthened against the franc due to higher inflows from coffee exports, rising foreign direct investment in oil and gas and increased tourism receipts. Uganda received about 1.5 million tourists in 2024, according to official data.'In nominal effective terms, the Rwandan franc depreciated against a weighted average of currencies from its main trading partners.''In 2024, it depreciated by 7.2 percent, an improvement from the 10.5 percent depreciation recorded in 2023. In terms of real effective value, the Rwf experienced a lower depreciation of 4.5 percent compared to the 10.3 percent observed in 2023.'This was primarily due to higher positive inflation differentials between domestic and foreign inflation observed in December 2024, it said. In 2024, the franc depreciated by 9.42 percent against the US dollar year-on-year, a significant slowdown from to the 18.05 percent depreciation recorded in 2023. Read: Rwanda central bank: This is why dollars are scarceThe franc also weakened against other major currencies, although at a slower pace, depreciating by 7.53 percent against the British pound and 2.83 percent against the euro, while appreciating by 1.03 percent against the Japanese yen. These exchange rate movements contrast sharply with those in 2023, when the franc weakened by 25.50 percent against the British pound, 22.50 percent against the euro, and 10.78 percent against the Japanese yen. Rwanda's trade with the East African Community (EAC) continued to expand in 2024, reflecting increased regional demand, but exports to the EAC grew by 8.2 percent to hit $276 million, up from $255 million in 2023. This growth was driven by higher exports of agricultural products and manufactured goods. Similarly, imports from the EAC increased significantly by 15.2 percent, reaching $998 million in 2024, compared to $866 million in the previous year. This rise was mainly driven by increased imports of food products, construction materials and manufactured goods, reflecting higher domestic demand and infrastructure development projects. As a result, Rwanda's trade deficit with the EAC widened further by 18.1 percent to $722 million from $611 million in 2023, according to the central bank. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
