Rwanda: Premature for Rwanda to Stop Dollar Dependency on Imports-Central Bank

Rwanda’s reliance on the US dollar for imports and exports should not be abandoned prematurely, according to Soraya Hakuziyaremye, Deputy Governor of the National Bank of Rwanda.

This perspective emerges as major economies, including Brazil, Russia, India, China, and South Africa (BRICS), collectively known as BRICS, strive to reduce their dependence on the US dollar through a process called de-dollarisation.

As the dominant global reserve currency, the US dollar remains crucial in international trade, investment, and financial transactions.

Hakuziyaremye made these remarks on Thursday, May 11, during the release of the quarterly Monetary Policy Committee and Financial Stability Statement, which reviewed recent global and national economic developments, along with potential interventions.

“To diversify the foreign currencies a country employs, one must consider its trading partners. In Rwanda’s case, we trade with China, European countries, the DR Congo, and the UAE, using dollars,” she explained.

Regarding Rwanda specifically, she stated, “It would be premature to announce that we will adopt alternative currencies.”

However, concerning the African Continental Free Trade Area (AfCFTA), she highlighted plans to establish a Pan African Payment Settlement System that will enable African nations to trade using their own currencies.

“Perhaps that would allow countries to reduce their reliance on the dollar when trading among themselves, but there is still a long way to go,” she added.