By David Himbara
The Rwandan franc (RWF) went downhill throughout 2019 especially from March as indicated on the chart. The Rwandan continues to collapse in January 2020. On January 6, 2020, the exchange rate dropped to US$1/RWF945.
Why is this? Among the factors driving the Rwandan currency into the ground is the sharp decline of external trade in reaction to the Rwanda-Uganda border closure.
On February 27, Rwandan strongman General Paul Kagame closed Rwanda’s busiest border of Gatuna where over half of the country’s US$3 billion annual international trade transits.
Kagame initially said that he closed the border due to infrastructure repairs. He then changed his story, and cited political destabilization by Uganda. Stay tuned.