The Rwandan Central Bank has taken decisive action by suspending six forex bureaus and penalising about ten others for deliberately withholding the US dollar, causing its scarcity and making it hard to find on the market, according to a report by The New Times.
The Central Bank’s action comes as a response to numerous complaints received from traders and concerned citizens, particularly in Kigali, regarding the unavailability of US dollars, which severely impacted exchange rates and disrupted market equilibrium.
People have been unable to find any after visiting several forex bureaus, the report adds.
The deliberate manipulative practises employed by these forex bureaus have not only caused economic distress but also eroded public trust in the financial system.
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.
To maintain transparency and accountability, the Central Bank has taken swift action by suspending the six forex bureaus involved. Additionally, a penalty has been imposed on 10 other bureaus found to have engaged in similar fraudulent activities.
The penalised forex bureaus are accused of deliberately withholding the US dollar, causing its scarcity and making it hard to find on the market.
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.”
