The National Bank of Rwanda will, on June 7, celebrate 60 years of existence and impact in driving economic and financial stability in the country. It was established in April 1964, and has evolved throughout the years, passed through the 1994 Genocide against the Tutsi, and contributed in the country's transformation journey while adopting various approaches and digitization processes. ALSO READ: Rwanda mulls a digital currency in two years - Central Bank Themed The Evolving Role of Central Banks, the ceremony will bring together different government officials, academicians, captains of industry, members of international organizations, investors, and private sector actors. Speakers include Victoria Kwakwa, the World Bank’s Vice President for Eastern and Southern Africa, Abebe Aemro Selassie, the Director of the African Department at the International Monetary Fund, and Monique Nsanzabaganwa, the Deputy Chairperson of the African Union Commission. Others include Michael Atingi Ego, the Deputy Governor of the Bank of Uganda, Maxwell Opoku-Afari, the Deputy Governor of the Bank of Ghana, Donald Kaberuka, the Chairman and Managing Partner of Southbridge Group, and Jean-Claude Kassi Brou, the Governor of the Central Bank of West African States (BCEAO). The discussions will include financial and monetary stability, financial inclusion public-private partnership, climate change, and the future of central banks, among others. In 1994, the genocidal regime looted the central bank and took most of the resources to exile, leaving the country to build the institution and whole economy from scratch. Employees had to work for the first six months without pay after the Genocide was stopped. According to John Rwangombwa, the Governor of NBR, new money had to be printed to not only rebuild the economy but also render obsolete the stolen money which was being used to finance exiled genocidaires to come back and destroy the country. He said: “There might be challenges here and there, but with visionary leadership and a clear sense of direction, we maintain the focus.” In the next 10 years, Rwangombwa expects global financial flows to be easier, seamless, and less costly, and NBR is positioning itself to be a catalyst for that in Rwanda through digital transformation. With the young generation we have, I expect to see more transactions in electronic form than cash but cash away in the next 10 years, I don't think so. We still have people who like cash. NBR has a mandate to drive economic stability based on the move of prices on the market and financial sector stability in the country. In 2019, it transitioned to a price-based monetary policy from a monetary targeting regime it had adopted in 2012. The new strategy uses interest rates as the operational target, aiming to steer economic outcomes more effectively. ALSO READ: Why Rwanda’s central bank lowered benchmark rate The central bank oversaw the stabilizing of inflation over the past three years, from a peak of 21.7 percent in November 2022 to the current 4.5 percent in April, through monetary policy rates and various government measures to stabilize consumer prices. Following a series of reforms and a shift towards a free-market economy, the financial system has expanded and stabilized with a surge of financial institutions, growing from just a handful in 1995 to a robust network of 663 institutions. NBR has been at the centre of driving financial inclusion and digital transformation, transitioning the country to a cashless economy and middle-income country in 2035 and a high-income country by 2050.
