(2 Minutes Read)
The National Bank of Rwanda (BNR) plans to extend its foreign exchange (forex) hedging facility—currently available only to commercial banks—to businesses and individuals. The move aims to protect against rising forex costs by allowing users to lock in exchange rates for future transactions, reducing the impact of currency fluctuations.
BNR Governor Soraya M. Hakuziyaremye, explained that banks have used a “forex swap” to secure U.S. dollars at pre-agreed rates, paying a small premium for this stability. Now, BNR is encouraging banks to offer similar tools to clients, especially businesses that rely on foreign currency for trade, imports, or investments.
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This approach, already employed in countries such as India and Kenya, will enable Rwandan businesses to manage budgeting risks and plan for the long term. The Governor also noted broader efforts to safeguard the economy, including using gold in national reserves and maintaining strict risk management. “These tools are key to helping the private sector navigate uncertainty,” said Hakuziyaremye.
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