Economy

Burundi Central Bank doubles minimum capital to establish foreign exchange bureaux

“The minimum capital to establish a foreign exchange bureau has been raised to strengthen the equity,” said Jean Ciza, Governor of Burundi Central Bank (BRB) yesterday at a press briefing.

Jean Ciza, Governor of Burundi Central Bank “The starting capital rises from BIF 50 million to 100 million”

The starting capital rises from BIF 50 million to 100 million. He has granted to traders one year to comply with the new regulation.

According to Mr. Ciza, foreign exchange dealers must fix the exchange rate every day by referring to the official rates set by BRB. He requires them to display the daily exchange rate at a location visible and accessible to the public.

Burundi Central Bank requires foreign exchange bureaux to give clients an exchange bill showing the purchase and sale of the foreign currency. “A copy of the bill can be requested by BRB agents in charge of controlling exchange bureaux,” said Ciza adding that the holding of shares in more than one foreign exchange bureau is prohibited.

Each foreign exchange dealer must open an account in the central bank and keep a bank guarantee on that account. He must also acquire exchange bureau management software from BRB.

The governor of BRB explains that the revision of the Exchange Regulations that was in force since June 2010 aims to adapt the Exchange Regulations to the current moment, correct deficiencies observed in the control and monitoring mechanism.