The lack of skills and professionalism are undermining the growth of the local foreign exchange sub-sector, the central bank has said. 

The National Bank of Rwanda (BNR) governor, John Rwangombwa, noted that though the sector had made great strides, some market players still lack the required skills and ethics to run forex businesses.

"There are still those operators who are not following rules and standards governing the industry. Others are engaging in unethical practices, including submission of wrong market reports, speculation and currency manipulation, which make our supervisory work hard,” he noted.

Rwangombwa was speaking at the launch of the Rwanda Forex Bureau Association (RFBA) last week in Kigali. The association, launched by BNR and the Private Sector Federation (PSF), seeks to help streamline forex exchange business in the country.

Rwangombwa said the group will also make it easy for the regulator to work with the 188 forex bureaus operating in the country in areas of capacity building.

"It is also coming to address challenges, like lack of skills and unethical conduct among sector players,” he added.

The governor assured players of the central bank’s continued support, adding that BNR will work with the association to improve the sector.

He, however, declared war on forex dealers who engage in speculation, saying they would be dealt with as per the law.

Recently, BNR penalised an unspecified number of forex dealers who were accused of speculation that had led the depreciation of the local currency against the US dollar by imposing heavy fines or suspending licences of those that were found guilty.

Steven Ruzibiza, the PSF chief executive officer, said working under one umbrella group will make it easy for players to advocate for better policy, as well as enhance management of the sector. He added that the move will also help grow the industry and make it more competitive.

Zephania Muhigi, the RFBA president, said the association would invest in capacity building, and promote professionalism among sector players.

Muhigi urged forex dealers across the country to register with the new association to benefit from its services.

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