The Rwandan franc slightly depreciated by 1.9% against the US dollar as a result of high demand for foreign exchange to finance imports.
“The first half of the year has seen a more less stable exchange rate with a modulate depreciation of 1.9% on the official rate and 2.1% on the market rate. This is linked to an increase in foreign exchange resources to the private sector which increased by 14.8%,” the Governor BNR John Rwangombwa said.
Rwangombwa was presenting the monetary policy and financial stability statement in Kigali recently.
According to the monetary policy and financial stability statement, an increase in expenditure of 6.8% was recorded as compared to same period of 2013.
“This really impacted the stability of the exchange rate for the first six months of the year,” Rwangombwa said.
During the first half of 2014, FRW depreciated against the US dollar by 1.9% in June 2014 and traded between FRW670.08 in December 2013 and FRW 682.54 per dollar a slight increase of FRW11.
This depreciation recorded during this period is similar to the 1.8% recorded in June 2013.
This statement revealed that Rwandan franc appreciated against all regional currencies except the Burundian franc. FULL STORY
