4.3. Mission of National
Bank of Rwanda
Main mission of the Rwandan central bank are to ensure and
maintain price stability, to enhance and maintain a stable and competitive
financial system without any exclusion, to support government general economic
policies, promoting investment or regulating international currency movements.
(NBR, website)
4.4. Activities and
Objectives of the NBR
The objectives the BNR are to preserve the value of the
currency and to ensure its stability. To do so it exercises control on money
supply and credit, it ensures good functioning of the money and the foreign
exchange markets. It controls the working of the banking and financial
system.
Being the central bank, it has the exclusive right to carry
out the following activities so as to fulfill its objectives:
Issue of currency, act as a bank for the government, control
foreign exchange and manage foreign services.
The NBR is the monetary authority of the state, it formulates
monetary policy, supervises all banks and quite often carriers out research for
economic planning purposes.
It is the duty of the NBR to ensure quality of the Rwandan
francs, in times of durability, portability and more importantly ensure a
stable parity with other currencies.
In its capacity as the government's bank, the NBR does hold
the government accounts, administers all government transactions and lends to
government, though at an interest. The NBR sells government treasury bills. In
ensuring a good and effective foreign exchange market, the NBR controls and
manages foreign reserves. In pursuing that, the NBR carries out the following
duties:
- Fixing the exchange rate at a realistic level to ensure an
equitable balance of payment and price stability.
- Suppress the double foreign exchange market
- Liberalizing trade, both imports and exports and capital
transfers.
The NBR, in its duty to ensure an effective foreign exchange
market, introduced forex-bureau and liberalized the exchange rate, to be
determined by forces of demand and supply.
In the domain of institution reform, on 26 July 1997,
the act of parliament No.11/97 was passed promulgating the National Bank's
statutes. The statutes confer to the bank larger autonomy and powers than
before, necessary to fulfill its mission.
With respect to the bank circular No.02/97 of August
12th 1997 reorganizing the money market, the NBR now has autonomous
authority, on the money market, since that date. (NBR, website) Important
objectives of the bank are as follows: Issuing currencies, Managing
foreign exchange, Reserves, Regulates the money market, Maintaining
relationship with the Government and public institutions.
4.5. Used data
|
years
|
Mt
|
IG
|
YG
|
DEXCH(EX)
|
|
1995
|
62.9
|
-9.863
|
12.303
|
NA
|
|
1996
|
75.6
|
-4.698
|
19.649
|
6.47
|
|
1997
|
92.5
|
4.926
|
15.874
|
0.51
|
|
1998
|
97.8
|
-12.8
|
26.471
|
26.05
|
|
1999
|
104.2
|
4.48
|
70.009
|
18.81
|
|
2000
|
119.5
|
1.931
|
56.101
|
80.96
|
|
2001
|
130.7
|
-3.585
|
57.528
|
13.25
|
|
2002
|
144.3
|
4.19
|
75.261
|
28.19
|
|
2003
|
167.5
|
0.232
|
0.403
|
44.14
|
|
2004
|
187.4
|
-1.715
|
-0.23
|
61.45
|
|
2005
|
218.4
|
-3.514
|
0.17
|
-19.71
|
|
2006
|
286
|
3.307
|
-0.32
|
-6.01
|
|
2007
|
375.1
|
-2.502
|
-3.26
|
-4.8
|
|
2008
|
384.1
|
6.887
|
11.71
|
-0.2
|
|
2009
|
402
|
-4.663
|
25.93
|
21.47
|
|
2010
|
516.7
|
-6.173
|
3.74
|
244.73
|
Source of basic data: NBR, NISR and MINECOFIN
| 
