Central Bank has said that the money market that proved volatile over the last weeks is showing signs of normalcy after the bank took stun measures against the speculators.
By end of Friday, the Dollar was selling at Rwf 755 showing stability for two weeks after it was pushed to Rwf800 in late July which was caused by Speculators according to Central Bank.
The bank says that the market now has steady inflows as well as stable prices, which indicates normalcy in the economy.
“The market is getting inflows and prices are stable in Commercial Banks,” said Doreen Makumi, a communication expert with the Central bank in a interview with this website.
This Makumi says was after the Bank took stun measures cot penalize some of the bureaus that had speculated to push the Dollar to rwf 800 which resulted into a sharp depreciation of the local currency (Francs).
This resulted into price increase of most imported products such electronics, raw materials for brewery among others impacting further on the country trade deficit that stands at 6.5 percent in the first quarter, 2015.
But the market is still showing limited supply mainly in evening hours where some forex bureaus are not willing to sell out the Dollar, something experts say can likely spur the black market.
“Banks have not raised this issue, only some bureaus are still showing the speculative behaviors,” Makumi said.
Moreover, most people have been moving to Borders of Gatuna and Rusizi to buy dollars and later trade them illegally, raising more speculations in the market.
However, Central bank says is aware of the issue and has already acted on it with Makumi further assuring that “the Central Bank will continue to work on these malpractices.