Central bank suspends six forex bureaus, penalises 10 for fraudulent trade

The central bank has suspended six forex bureaus and penalised about 10 others for deliberately withholding the US dollar, causing its scarcity and making it hard to find on the market. The suspension is three months long, The New Times learnt. This follows reports from various parts of the country, particularly in Kigali, of a shortage of US dollars on the market. People have been unable to find any after visiting several forex bureaus. ALSO READ: Experts on how a strong dollar affects the Rwandan economy Speaking to the media, John Rwangombwa, the central bank governor, said what has been done is illegal and the claim about the scarcity of dollars in the market is not true. Rwangombwa clarified that the assertion of a shortage of dollars in the market, making it difficult for people to obtain them, is completely false. In fact, the demand for dollars has risen since June of this year, he stated. This is evidenced by the weekly sales of $10 million, which would not be possible if there were no dollars in the market, as some have claimed. “Therefore, the action was taken after a team from NBR inspected various forex bureaus in search of dollars, which they initially couldn’t find. However, those financial traders later provided the dollars to some customers. “The decision was taken based on what was captured by their CCTV cameras, leading to penalties for some and temporary closure of six,” he said. “We understand that some traders might be withholding dollars to manipulate their price for high profit, but the central bank warns against such practices, and those caught will face consequences.” ALSO READ: Rwandan franc depreciates by 8.8% Vianney Gasana, owner of one of the suspended forex bureaus in Gisementi, a commercial area in Remera sector, Gasabo District, said, “I cannot comment on the recent information provided by NBR. Whether it is true or not, I have nothing more to add to it.” Annick Gashagaza, another forex bureau owner in the same area, said, “My office was closed on October 20, but I cannot provide any information about the reason as to why it was closed.” She added: “Once I have clarity on the cause, I will address it, but for now I cannot provide any explanation.”

News

Central bank suspends six forex bureaus, penalises 10 for fraudulent trade