The Rwandan franc (Rwf) is showing signs of stabilisation after sharp depreciation against major currencies, particularly the U.S. dollar, since 2023. In 2023, the franc fell by 18.05 per cent against the dollar, far higher than in previous years. The pressure eased in 2024, with a smaller 9.42 per cent depreciation. Data from the National Bank of Rwanda (BNR) shows further improvement in 2025. In the first half of the year, the franc depreciated by just 2.9 per cent against the dollar, compared with 3.7 per cent in the same period of 2024. BNR Governor Soraya Hakuziyaremye credited this stability to stronger export earnings, driven by high international prices for coffee and minerals. “What we have observed is that prices of export commodities such as coffee as well as minerals remain elevated, which supports Rwanda's export earnings. And the increase in metal and mineral prices is due to the high demand for mainly electronics and tech companies globally,” she said during the presentation of the Monetary Policy Committee and Financial Stability Statement on Thursday. ALSO READ: Rising prices offer Rwanda’s coffee sector a boost According to the central bank, merchandise export earnings rose 6.2 per cent to $826 million, up from $777.7 million in the same period of 2024. The growth was driven by higher receipts from both traditional exports, particularly coffee, and non-traditional exports. Meanwhile, merchandise imports grew 4.5 per cent, reaching over $2.3 billion, compared with just over $2.2 billion in the first half of 2024. ALSO READ: Rwanda records $1.5bn in gold exports in 2024 The rise in imports reflected strong domestic demand, supporting the recovery of economic activity, the central bank noted. As a result, the trade deficit widened slightly by 3.6 per cent to more than $1.48 billion, up from $1.43 billion a year earlier. Even so, Governor Hakuziyaremye pointed to a positive shift in the second quarter, when the deficit narrowed following a 15.5 per cent surge in merchandise exports between April and June. “These positive developments explain why our currency has stabilised. With the foreign exchange pressures easing, the Rwandan franc depreciation against the US dollar at the end of June stood at 2.9 per cent,” she said. She noted this was an improvement from the same period in 2024, when the franc had depreciated by 3.7 per cent. “This improvement in the foreign exchange market was supported by an improved trade deficit, driven by stronger exports in the second quarter of 2025.” The governor further highlighted two other factors: the weakening of the U.S. dollar in global markets, particularly in the second quarter, and domestic foreign exchange market reforms implemented in the first half of the year. Strong economic growth Rwanda’s economy remained resilient in the first half of 2025, recording real GDP growth of 7.2 per cent, Hakuziyaremye said. With GDP rebased to 2024 constant prices – instead of the 2017 prices – the economy grew by 6.5 per cent in the first quarter and accelerated to 7.8 per cent in the second quarter, she indicated. ALSO READ: Rwanda’s economy up by 7.8% in Q2 2025 as base year changes Growth was largely driven by the services sector, which expanded by 9.4 per cent, boosted by a 14 per cent growth in trade and services. The industry sector, which grew by 8.8 per cent, driven by a 12.5 percent increase in construction due to major infrastructure projects, also was among contributors. Agriculture also played a role, with a modest recovery in the sector, as it registered overall growth of 1.7 per cent in the first half, though it recorded 8 per cent growth in the second quarter alone.
