This archive report was first published on 9 October 2019.
As Burundi grapples with a severe economic crisis, small-scale traders are finding it increasingly difficult to access foreign currency, exacerbating the country's economic woes.
When the political crisis erupted in 2015, the forex rate almost doubled, with the dollar exchanging at Bfi3,050 ($1.65) against an official rate of between Bfi1,700 ($0.92) and Bfi1,800 ($0.97).
According to a trader in Bujumbura, the central bank's move to crack down on forex bureaus that have been selling dollars at twice the official rate has created a scarcity of dollars, leading to an even higher black market rate.
"We don't mind the high rates, but the issue is getting the dollars so that we can travel to keep our businesses afloat," said the trader.
The Bank of the Republic of Burundi (BRB) does not have enough foreign currency to satisfy the market despite imposing tough measures on private forex bureaus.
"If I was to walk into the central bank today to buy dollars, they won’t have enough. So how are we expected to import goods?" the trader asked.
Published on October 9, 2019, the regulations had been in place since June 2010, but the recent measures have further restricted the operations of forex bureaus.
As part of the new regulations, forex bureau operators are required to purchase software worth Bfi2 million ($1,081) to help the central bank monitor their activities.
The government has also announced that forex bureaus will have to increase their capital to Bfi100 million ($54,054) from Bfi50 million ($81,081) and provide receipts for all exchange transactions.
Additionally, the operators must be registered with an association of forex bureaus and adhere to a daily withdrawal limit of $500 per day, with any excess requiring permission from the central bank.
