The central bank hasissued guidelines forbuying and selling foreigncurrency as the scarcity of the greenback continues to hit the economy.
The Central which rushed in to blame speculators for having caused an upward trend of the Dollar and setting supervision of the Forex bureaus, has now set new guidelines to cushion further deterioration of the francs against the dollar.
The dollar has been on an upward trend hitting highest of Rwf800 in the last weeks before the central bank intervened and set at Rwf 755 whichis also higher compared to the same period last year.
Central bank Governor, John Rwangombwasaysthat the businessof sellingthe foreign currency should be done by licensed forex bureaus as well commercial banks.
“In a bid to streamlinethe foreign exchange market, we remind the public to always ensure that the bureaus you are about to transact business with, must have a valid license from the national bank of Rwanda,” he said
He adds, “the forex rates are publicly displayed on the notice board.”
The Central bank also noted that anyone buying or selling foreigncurrency must present their national identity card or valid passport as well as requesting for a receipt after the transaction.
The governor says that this will remove the illegal foreigncurrency vendorswho as he insists have speculated and led to the rise of the green back.
“It is strictlyprohibited to buy or sell from street vendors who are not authorized by national bank of Rwanda,” Rwangombwa noted in a statement that comes after the bank announced onThursdaylast weekthat it is tightening itssupervision onthemoney market.
In another strict measures, the central bank as stopped any pricing of goods and services within the country in foreign currency, this has been common with uptown estates as well as services that are priced in Dollars.
By the beginning of the week the scarcity of the dollar has continued to hit with mostforex bureaus spending a day without dollars while others are restricted totransaction upto 4:00 pm.
The dollar scarcity is likely to hit the economy hard with the country‘s growing trade deficit which staggers at 6.5 percent due toincreasing import receipts, mostly transacted in dollars.