Remittances hit US$84.1m

Remits from Rwandans living abroad hit US$84.08 m (Rwf49.6 billion) in the second quarter up from US$25.78 (Rwf15.2 billion) in quarter one of 2011. According to first semester statistics from the National Bank of Rwanda (BNR) money sent by Rwandans working and living abroad in quarter two has surpassed last year’s remits from US$49.1 m (Rwf28.9 billion) last year to US$84.1 m (Rwf49.6 billion) this year, representing a 71.2 percent increase. National Bank Governor, Clever Gatete, told Business Times, the more the currency appreciates, it boosts the Rwanda Franc’s purchasing power. “This is an indicator that people living abroad have trust and confidence in the country’s economical environment,” Gatete explained. “The money is sent in for different purposes including building houses for relatives living in the country, medical care and invested in different sectors, hence contributing to the country’s economy directly,” Gatete noted. He also revealed that the country has 12 approved remittance providers adding that more are set to come in. Figures from BNR further indicate that remittances from Rwandans abroad reached US$15.9 m (Rwf9.4 billion) in quarter two compared to US$33.1 m (Rwf19.5 billion) in the whole of 2010, which may surpass last year’s figures. The total remittances to Rwanda in quarter one this year increased by five percent to US$25.7m (Rwf15.3b) compared to US$US24.5m (Rwf14.6b) in the same period last year. Early this year, the World Bank said thar remittance flows to developing countries are expected to increase in 2011-13, but at lower and more sustainable rates compared to the period prior to the global financial crisis. dougie85@gmail.com