The Rwandan franc depreciated by 0.49 per cent against the US dollar last month, higher than 0.39 per cent in April, a statement from the National Bank of Rwanda (BNR) indicates. The statement shows that the franc and other regional currencies were volatile during the month because of the greenback’s continued appreciation against the major international currencies. The US dollar has gained about 9.9 per cent on the euro and by 1.28 per cent against the Great British Pound since the start of the year, impacting other currencies. The central bank quoted the US dollar at Rwf707.1/721.2 (buying and selling) at the end of last month compared to Rwf703.8/717.5 at the beginning of May. Banks and forex bureaus quoted the greenback at an average of Rwf722/725 at the end of last month, from Rwf715/725 at the start. Compared to East African Community (EAC) states, the Rwandan franc had the lowest depreciation rate against the US dollar in May, with the Tanzania, Kenya and Uganda shilling depreciating by 5.45, 3.37 and 2.44 per cent, respectively during the period. BNR attributes the franc’s lower depreciation compared to its EAC peers to its weekly market intervention of selling US dollars to commercial banks, which in turn sell to forex bureaus. However, forex traders in the market continue to say the intervention is not enough.
