Central bank steps up efforts to check effects of Dollar shortage

The National Bank of Rwanda (BNR) has responded to the prevailing US Dollar shortage by increasing the volumes and frequency of supply into the market. The intervention follows dollar shortage in the market that players say has persisted for close to two weeks. Speaking in an interview, Chantal Kasangwa, the BNR director-general for operations, said they were aware of the shortage. She said the Dollar demand goes up at a period such as presently due to an increase in economic activity. “This is why we have increased our intervention volume and frequency. This month, we are on the market twice a week. We are also working with market players to see that there are no cases of malpractices,” Kasangwa said. On whether or not the shortage is likely to inflate the price of the Dollar in the market, Kasangwa said in the event of an increase, it should reflect market conditions. The American currency has been scarce on the local market in recent weeks with traders and retailers saying they are unsure of how long the trend is likely to persist. As of close of business on Friday, BNR’s rates had the Dollar trading at Rwf773.1 and Rwf788.5 for buying and selling, respectively. However, unlike previous instances, the shortage has not weakened the Franc greatly. Forex bureau operators across the city say the low supply of dollars in the market has been persistent for nearly two weeks and they were unsure for how long it would persist. Traders, travellers decry shortage Marie Umutoni, an attendant at a Remera-based forex bureau, said they have had to turn clients away or not been able to meet their demands. “The most affected clients in our case have been traders who do business outside the country and require foreign currency for their transactions. Most have had to go around buying small amounts of the currency,” Umutoni told The New Times. Local businesspeople, mostly those involved in imports and exports, say they have to hop from forex bureau to forex and banks in the city in search of dollars. John Mugirane, a local businessman, said, while travelling outside the country recently, he had to settle for alternative currency other than the Dollar after failing to find the American currency. The central bank last year introduced measures to reduce impacts of speculators on the Dollar rate and consequent artificial shortages that have previously plagued the local forex market. Among the measures include banning pricing of products in foreign currencies. Members of the public buying or selling foreign currency are also required to present valid identification documentation and be issued with a receipt showing transaction details. editorial@newtimes.co.rw

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Central bank steps up efforts to check effects of Dollar shortage