Economy expert concerned over closure of all forex offices

Jean Prosper Niyoboke, expert in economy says the decision taken by Burundi Central Bank to close all foreign currency offices will have no impact on the Burundian economy if the government is ready to supply enough foreign currencies as the forex offices did to satisfy their clients. “The exchange rate will be stable and prevent Burundian francs from being depreciated,” he says.

Jean Prosper Niyoboke: « if the government fails, the decision will hamper all business activities”

He, however, says if the government fails, the decision will hamper all business activities. “Business people will hardly have enough foreign currencies to import their goods,” he says adding that foreign currency offices were supplied from different sources.

He also mentions the little interest of the foreign currencies these days due to the coronavirus outbreak in China. “Few people fear to demand foreign currencies as they aren’t allowed to travel to China to import,” he says.

Jean Prosper Niyoboke says speculation should also occur if the government fails to supply enough foreign currency. “If there is a high demand of foreign currencies, dealers will speculate on the price,” he says.

On February 10, Burundi Central Bank decided to close all foreign currency offices operating in Burundi over the violation of the exchange rate. Forex offices established by commercial banks will only authorize to deal foreign currencies.