Kagame’s Recklessness Collapsing Rwandan Currency

By David Himbara

General Paul Kagame’s recklessness is collapsing the Rwandan Franc (RWF). As a matter of fact, RWF was the worst performing currency in EAC in the past 12 months. This is shown in graphs below illustrating how the currencies in the East African Community (EAC) traded against the US dollar from March 29, 2018, to March 28, 2019.

Rwanda Franc versus US$ from March 29, 2018 to March 28, 2019

Source: https://www.xe.com/

The Rwanda Franc declined through the year and then sunk steeply in March 2019. This sharp decline was no doubt in reaction to the closure of the Rwandan border by Kagame.


Kenya Shilling versus US$ from March 29, 2018 to March 28, 2019

The Kenyan currency sharply declined in November 2018, but quickly recovered, steeply rising in February 2019.


Uganda Shilling versus US$ from March 29, 2018 to March 28, 2019

Uganda’s shilling dropped sharply in June 2018, but recovered in July 2018.


Tanzania Franc versus US$ from March 29, 2018 to March 28, 2019

Tanzania currency declined sharply in January 2019, but stabilized thereafter.


Burundi Franc versus US$ from March 29, 2018 to March 28, 2019

Burundi currency has declined in the past year but as graphically shown, its decline is not as steep as Rwanda’s.


From the above charts on East African currencies against the US dollar, it is evident that Rwanda’s currency is the worst performer. The Rwanda Franc dropped month after month from March 28, 2018, to March 29, 2019. Kenyan and Ugandan currencies improved considerably. Tanzanian and Burundi currencies’ performance was mixed.

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