Why central bank shies away from Rwanda, Congolese currencies in forex trading
BOU Explains Reluctance to Provide Forex Updates on Rwandan and Congolese Francs
The Bank of Uganda has clarified its decision to refrain from regularly providing forex updates on the Rwandan Franc (RWF) and the Congolese Franc (CDF), citing a combination of economic, regulatory, and practical factors.
According to Kenneth Egesa, director of communications at BoU, the central bank's approach is part of a strategic effort to prioritize domestic economic stability while navigating regional relationships and market demands.
Egesa explained tthat the central bank aims to prevent unnecessary market fluctuations that could affect Uganda’s financial environment by limiting updates on these currencies.
“We actually provide forex updates for all of the currencies, when you look at our dashboard we provide them in details but we mostly focus on the market demand and the currencies that are always used in transactions,” Egesa said.
Market demand also plays a role in BOU’s decision. Egesa noted that there is limited interest in the RWF and CDF among Ugandan traders and investors compared to major international currencies.
In conclusion, the Bank of Uganda’s insits that the it doesn’t shy away from providing regular forex updates on the Rwandan and Congolese Franc but continues to ensure domestic economic stability, respect regional monetary policies, and efficiently manage resources.