Central bank has a right to regulate money


RE: “How black market forex exchange operators are thriving in Kigali” (The New Times, August 29).

The national bank has every right to control what people do with the national currency including how it is traded. After all, the money belongs to the central bank - somewhat like a copyright. The central bank prints it and can even declare it to be void on a whim - like they did around 2005 when everyone had to turn in their “bad” money for “new, good” money.

Here is an example to explain better: What happens to the value of a Rwf 1000 note if you keep it in your house for ten years? Answer: You lose most of its buying power. Why? Because it really has no long term value! Why? Because that is how the central bank wants it.

Money belongs to the central bank - not to the people, we just get to use it now and then. So don’t complain when they put rules on what is theirs!