New regulations for Rwanda forex

But Muhigi is confident the new moves will improve operational efficiency and ease costs in the long-term.

He says the new reporting and business management system will enable the association and members to process data and reports in real time besides improving operations.

He adds that members who have been using manual forms to capture client or other data will now have an easy time as, with the new system, details of customers will be access by simply swiping the national ID on a card reader. “Filling of forms or manual issuance of client receipts is time wasting but the software will address this challenge, and also ease storage of data across the sector,” he says.

He says that professionalisation of sector is crucial, adding that it is part of the association’s ongoing plans to build the capacity of all sector players.

“It’s important that forex dealers that don’t meet minimum requirements employ qualified personnel. These can in turn train members, especially on new system, to ensure that they gain operational competence of the system,” he says.

There are 92 forex bureau firms in the country, 60 per cent of whom are base in the City of Kigali districts of Gasabo, Kicukiro and Nyarugenge.

Muhigi says he is confident that forex bureaus will meet the June 2018 deadline.

He is, however, calling for strong measures against black market operators in the sector, saying they affecting profitability of genuine dealers.

He wants enforcement agencies, BNR and other concerned government institutions to put in place measures that will make it risky business to engage in illegal forex trade.

According to him, as the regulator streamlines operations of registered forex dealers, it should tighten noose on illegal traders, noting that they are eating into the customer base of legitimate dealers. And he is naming and shaming the areas with most of illegal forex dealers as Rubavu, Rusizi districts, and Kigali.

He urges the public to transact business with only licenced forex traders who operate from recognised premises and warns supermarket and shop owners against selling their merchandise in foreign currency. He says this contravenes forex regulations.

“We advise the public to respect the law and do business with only registered traders because supermarkets or shops are not licenced to deal in forex trade,” he explains, adding that customers with foreign currency are supposed to first exchange it so that they can transact using the local currency. He adds that the stance is geared at avoiding market distortions and speculation.

BNR Governor John Rwangombwa recently applauded efforts of association of forex operators, saying it has had a positive impact in the sector’s operations and in facilitating engagement with the industry.

“We have been working with them to deal with illegal dealers in the sector and to remove distortions and speculative tendencies,” he said.