Pressure on Rwandan franc continues to ease in H1
Pressures on the Rwandan franc against the U.S. dollars continued easing in the first half of 2017, Rwanda's central bank said Wednesday.
This is owing to improvement in Rwanda's export receipts and the decline in dollar demand in line with increased domestic production of some of the previously imported goods and the phasing out of some major construction projects, said the central bank's latest monetary policy and financial stability statement.
The franc depreciated against the dollar by 1.3 percent at the end of June and 1.64 percent by Aug. 13, 2017 compared to 4.8 percent by the end of June, 2016, said the central bank, adding that it is expected at around 3 percent at the end of December this year.
Consequently, the central bank maintained an accommodative monetary policy stance to continue supporting the financing of the economy by the banking sector, given that both inflationary and exchange pressures were expected to decline.
Meanwhile, the Rwandan economy grew by 1.7 percent in first quarter of 2017, down from 8.9 percent recorded in first quarter of 2016, said the statement.
This slowdown in economic performance was mainly due to the completion of big construction projects, which affected the performance of the industry sector, read the statement.
Owing to the long spell of the drought, growth of the agriculture sector slowed to 3.0 percent in first quarter of 2017 from 8.0 percent of the same period of last year, it said.