The National Bank of Rwanda (BNR) has announced plans to increase foreign exchange trading, by using the Reuters system to enhance flexibility in Rwanda’s forex market.
The Bank’s Vice Governor, Amb. Claver Gatete told Business Times that the new system involves the latest electronic and IT facilities that will allow BNR to easily monitor currency trading and other financial transactions.
“It’s expected to enhance the operations and expanding the scope because the market will be more flexible with real exchange rate of the Rwandan Francs,” he said.
The new inter-bank exchange corridor plan envisages sharing daily information on foreign exchange market and improving market efficiency within banks.
Gatete said the equipment has been installed in Bank’s premises. A consultant will be hired to train dealers in different banks across the country.
“Traditionally they (banks) have been using group e-mails, but the equipment is modern, sophisticated and suits Rwanda given the maturity of our financial market,” he said.
“The objective of the Central Bank is to ensure flexibility of the functioning of market mechanisms, financial stability and the stability of the national currency.”
The Rwandan Franc appreciated significantly against the euro and regional currencies in Q1 of this year, the Central bank said in the monetary policy statement that was released on Thursday.
According to the statement, in Q2, BNR accommodated a depreciation of 3 percent vis-à-vis the US Dollar to offset the effect of its appreciation on exports competitiveness.
Since July, the Rwandan Franc stabilized with the US Dollar exchange rate trend
As part of the ongoing program to improve operations in the forex market, the existing foreign exchange rates mechanism used as the framework for BNR intervention has been adjusted with an aim of further enhancing the exchange rate flexibility.