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Mixed reactions trail introduction of new 5,000, 10,000 banknotes in Burundi

Published

1 year ago

July 5, 2023

The introduction of new 5,000 and 10,000 Burundian franc banknotes in Burundi has elicited mixed reactions from the public.

Under the new policy, the Bank of Burundi restricted cash deposits by individuals to a total of 10 million francs ($3,543) and by legal companies to a total of 30 million francs per day and per account.

There are reported cases of difficulty in exchanging old notes for new ones, particularly since the expiration of the deadline in June, but Faustin Ndikumana, an economist quoted by Reuters, argued that the policy was “beginning for the government to be able to start reforms, a necessary awareness to really break this cultural conservatism.”

“In Burundian culture … each person wants to keep his wealth at home”, Ndikumana added.

The current situation makes cash swaps difficult for unbanked persons. Chantal Mugisha, a merchant at the COTEBU market said, “When you don’t have a bank account, your old bills aren’t replaced. It’s impossible. They force us to open accounts at the bank when we have no means to add to an account.”

A Taxi driver in Bujumbura also lamented how he was unable to deposit his 170,000 Fbu (Burundian francs, about 54.8 euros) banknotes.

“I wanted to get gas from Gatumba and I heard that if I don’t have new bills they can’t give me gas. So I wonder how to deposit these notes in my boss’s bank account and I will be forced to stay in Bujumbura, I live inside the country,” the driver, Niyonkuru, said.

The Burundi outcry is similar to the cash scarcity in Nigeria earlier in the year when the central bank introduced new designs of the N200, N500, and N1,000 notes in an attempt to bring currency from outside the banking system into the banking system, thereby making monetary policy more effective in combating inflation.

Burundi’s central bank has promised to send representatives to remote places to help with the exchange.

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

2 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.