Central Bank hits back at speculators to stabilize Rwandan franc

John Rwangombwa Governor of the National Bank of Rwanda

A few weeks after  it   blamed  speculators on the  money  market to be behind the  franc  decline  against the  dollar, Central Bank  has increased  its  intervention  as  a measure to counter the speculators. The  Governor of the Central Bank, John Rwangombwa says that  in  order  to curb  down  speculation that was  recording a dollar   at Rwf 800, the  central  bank  has set  strict regulatory measures by  penalizing  forex  bureaus. This included penalizing forex Bureaus that caused the recent speculations through monetary fines and suspension of licenses for those who were found guilty. As a result,  the franc  was  pulled  down   to Rwf 755  per dollar  on Thursday,  providing  an ease  for the economy that  is …

KCB experiences 13 percent Tax Growth

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Kenya Commercial Bank (KCB) a regional financial group, has announced a 13 per cent tax growth in the first half of the year, driven by rise in funded and non-funded income, international business returns and efficient cost management, a statement from the bank indicates. During the January-June period, the group’s profit before tax rose to Rwf 89.8 billion) from Rwf79.6 billion in June 2014. KCB Group chairman Ngeny Biwott said the financier shrugged off a relatively tough business environment, especially in Burundi and South Sudan, to post the improved earnings. “We had a relatively tough macro-economic and political environment in most of the markets the bank operates. In South Sudan and Burundi, we had economic…

Rwanda currency to weaken on dollar demand

Central bank Governor: John Rwangombwa

The national bank of Rwanda (BNR) expects the local currency to weaken by five percent this year but said there was little cause for concern, and warned that the bank would crack down on speculative trade by forex bureaus. John Rwangombwa, the governor central bank noted that the franc, which has lost about 4 percent to the dollar since January, has lost ground due to the global dollar strength and a high import bill. The franc has fared better than regional currencies – the Ugandan shilling has lost about 23 percent against the dollar this year, while Kenyan shilling has weakened about 12 percent. “We expect the depreciation to be around 5 percent. There is…

Kigali City contributes Rwf 25 million to Agaciro Development Fund

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In an effort to contribute towards Agaciro Development Fund, the city of Kigali employees extended Rwf 25 million through theMinistry ofFinance and Economic Planning (Minecofin). Speaking at the handover this week, the mayor of Kigali city,FideleNdayisaba said that employees   have beenputting aside part of their salary in order tocontribute to the development fund, a noble move to dignify the country. “We are committed to keep on contributing to this sovereign wealth fund every year as part of dignifying our nation and protecting the future generation,” Mayor Ndayisaba said while handing over the cheque. The fund is the country’s first solidarity fund that was started in 2011 by Rwandans as one way of improving the level…

BPR shareholders to lose stake

BPR shareholders to lose stake

Thousands of Shareholders in Banque Populaire du Rwanda (BPR) are to lose their shares in the Bank if they don’t register by this month’s deadline of July 18. Ephraim Turahirwa, the BPR chief executive officer said there are 590,292 shareholders as per the lender’s articles of association, “most of whom have ‘unknowingly’ owned shares in the bank”. The bank started as co-operatives in 1975, and transformed to a commercial bank in 2008. “Some of the shareholders died during the 1994 Genocide against the Tutsi, others due to natural causes. Therefore, there is a large number of people out there with shares in BPR, but are not aware of this fact,” Turahirwa stated. He said many…

Financial sector resilient-Rwangombwa

Financial sector resilient-Rwangombwa

The country’s financial sector has gone through a transformation process towards being a more resilient and stable which creates many opportunities for global investors, says John Rwangombwa, the governor of the National Bank Rwanda (BNR). The Central Bank Chief who was speaking at a news conference shortly after BNR quarterly Financial Stability Committee (FSC) and Monetary Policy Committee (MPC) meetings noted that Rwanda’s financial industry remains sound and stable and even shown signs of growth in what have continued to be troubled economic times. “There is a need to continue strengthening the supervisory functions to support the development of financial institutions and ensure diversification of financial products,” he said. Rwangombwa stated that, MPC decided to…

Rwanda’s trade deficit narrows by 6 percent

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The country’s  trade deficit   narrowed  by  6.0 percent  in the first five months of  2015  compared to the same period  2014,an  impressive   outlook   that  kept  the economy  resilient. The contractionfrom  U$ 722.5 6 million in the  first five months  of 2014 to  U$ 679.22 million in the same period  this year, according to central bank is as a result of   a decline in formal imports that fell  by 5.1  percent   in  value  in  the  first  five  months  of 2015. With   this decline, formal exports were   able to cover 25.2 percent of formal imports in the first quarter of 2015 compared to   24.5 percent coverage in the same period 2014, and this is despite a slight…

Rwanda inflation declines

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Rwanda’s gross domestic product (GDP) grew 7.6 percent in first quarter 2015 from a year earlier, helped by expansion in the agriculture, services and industrial sectors, the statistics office has said. In a statement, the National Institute of Statistics (NISR) said, the agriculture sector grew by 4 percent for the first quarter of this year, while the industry sector grew 7 percent and the services sector grew by 8 percent. According to statistics released last week exports increased by 10.22 percent when comparing to the same quarter of 2014 while imports decreased by 1.75 percent over the same period as of last year. The total value of exports is 101.90 million U.S. dollars, imports is…

Eco bank group records U$ 5.82 million in profits

Eco bank group records U$ 5.82 million in profits

The Eco Bank group has recorded a profit worth U$ 5.82 million for the year 2014, an outlook that   shows a resurgent bank that is able to bolster access to finance across borders on the continent. By the end of December 2014, the pan African bank group that also operates in Rwanda registered US$24.2 billion in total assets and US$2.7 billion in total equity. Accordingly, of the total profit U$ 0.87 million was transferred to special reserves while U$ 4.85 million to retained earnings. “Our accounts for FY 2014 have shown a resurgent Ecobank, which enjoys the confidence of all its stakeholders. We can expect similar positive performance for 2015,” said Emmanuel Ikazoboh, Ecobank Group…

Master card enters Rwandan market

Master card enters Rwandan market

Cogebanque has become the first bank in the country to issue the internationally acclaimed master card in a move seen as part of the Bank’s efforts to expand its clientele base and products variety. Four new master cards were set to be issued by the bank as of yesterday and thus will enable tourists and foreign investors to go cashless a move promoted by the economy. Speaking at the launch of the cards at the company headquarters, Flory Rukokora, the head of electronic banking at Cogebanque noted that the company aims to give consumers variety regarding their choices. “With the launch of these four cards our target aims to give consumers in the country more…