The Rwandan Franc and the National Bank of Rwanda

At a glance

Key monetary-policy and currency indicators. The BNR homepage displays the policy and inflation periods alongside its currency quotations.^1,2,3

Source: National Bank of Rwanda: Raises the Central Bank Rate to 8.75 percent as inflation remains elevated (August 2026); National Bank of Rwanda: BNR - National Bank of Rwanda; National Bank of Rwanda: Exchange Rate Table^1,2,3

These figures measure different things. The Central Bank Rate (CBR) is a monetary-policy setting. Inflation measures changes in consumer prices over a specified period. A currency quotation gives a price for exchanging one currency for another. Check the date, period and type of rate before comparing figures or using them in a budget.^1,2,3

How monetary policy works

The BNR’s mandate is to maintain price stability and a sound financial system, enabling sustainable and inclusive growth. Its Monetary Policy Committee (MPC) reviews domestic and international economic developments, updates its projections and decides the appropriate CBR. The rate is a signal of the policy stance; it is not the customer interest rate that a commercial bank must charge on a particular loan or pay on a deposit.^1,2

At its 26 August 2026 meeting, the MPC raised the CBR by 0.5 percentage points, from 8.25% to 8.75%. The BNR said the decision continued the tightening cycle and aimed to anchor inflation expectations, limit second-round effects and support inflation’s return to the target range in the second half of 2027. The bank described the cumulative increase since November 2025 as 175 basis points.¹

Policy changes specifically identified in the BNR’s August 2026 release.¹

Source: National Bank of Rwanda: Raises the Central Bank Rate to 8.75 percent as inflation remains elevated (August 2026)¹

Inflation and the target

The BNR’s strategy aims to keep headline consumer-price inflation within a 2%–8% band, moving towards a medium-term target of 5%. In 2026, inflation was above the band: the BNR reported 9.1% in the first quarter and 13.2% in the second quarter, followed by 13.6% in June and 14.5% in July. The BNR homepage later displayed headline inflation of 17.2% for September 2026.^1,2,3

The August MPC release linked the rise to higher core, fresh-food and energy inflation. Core inflation increased from 9.3% to 12.3%, with higher prices for transport, housing and food. Fresh-food inflation rose to 7.3%, partly reflecting vegetable prices, including Irish potatoes and beans. Energy inflation reached 45.7%, reflecting higher prices for solid and liquid fuels and cooking gas. These component readings help explain why headline inflation can move sharply even when individual households experience different price changes.¹

The BNR projected inflation to remain above the target band throughout 2026 and return within it in the second half of 2027. Its release projected 13.1% for 2026, explicitly described as the annual average, and gave a 7.9% projection for 2027. The MPC identified food prices and global commodity costs as risks, including weather effects on rice, cooking oil and sugar and elevated oil prices linked to conflict in the Middle East. These are forecasts, not guaranteed outcomes.¹

How policy reaches bank customers

A change in the CBR can pass through to money-market and retail banking rates at different speeds. In the second quarter of 2026, the interbank rate was 7.73%, up from 6.30% in the same quarter of 2025 and closer to the CBR. The BNR linked this movement to the February and May policy increases and liquidity management.¹

Quarterly average deposit and lending rates reported by the BNR.¹

Source: National Bank of Rwanda: Raises the Central Bank Rate to 8.75 percent as inflation remains elevated (August 2026)¹

The BNR described average deposit and lending rates as broadly stable year on year despite the CBR increases. It also reported that lending rates for individuals increased while those for corporate loans declined; the latter movement mainly reflected a higher share of short-term borrowing, which generally carries lower rates. These are period averages, not a quote for a particular customer. When comparing a loan or deposit, check the provider’s current rate and the terms that apply to your account.¹

Reading the franc’s exchange quotations

The BNR homepage lists separate buying and selling quotations for the US dollar. At the figures displayed there, the buying quotation is RWF 1,471.825 and the selling quotation is RWF 1,481.825 for USD 1. Buying and selling describe different sides of an exchange: the applicable one depends on whether the provider is buying or selling the foreign currency in the transaction.²

BNR homepage US dollar quotations, expressed as Rwandan francs for USD 1.²

Source: National Bank of Rwanda: BNR - National Bank of Rwanda²

The midpoint is only the arithmetic average of the two published quotations; it is not a third BNR rate. A bank, exchange provider or transfer service may apply its own customer terms. To compare an exchange or transfer, identify whether you are buying or selling dollars, then compare the amount you will pay or receive under the provider’s quoted terms. Do not assume that the CBR or the midpoint is the rate available for a customer transaction.²

Recent franc movements

The franc’s movements differed by currency in the first half of 2026. It depreciated by 0.87% against the US dollar, less than the 2.96% depreciation recorded over the same period of 2025. Against the euro, it appreciated by 2.05%; the BNR compared this with a 15.96% depreciation in the first half of 2025. Against the Chinese renminbi, it depreciated by 3.80%, compared with a 4.88% depreciation a year earlier.¹

These are changes over a six-month period, not daily exchange quotations and not a prediction of future movements. The BNR attributed the more modest first-half depreciation against the dollar to foreign-currency availability from remittances, export growth and foreign direct investment, alongside the continuing effects of foreign-exchange reforms introduced in 2025. It reported that international reserves covered 4.2 months of imports at the end of June 2026, above its cited four-month benchmark.¹

The IMF has described exchange-rate flexibility as important for absorbing shocks and called for continued reforms to strengthen foreign-exchange market functioning. For businesses and investors, this context is a reminder that a past movement in one currency pair cannot be used as a fixed conversion assumption for another period or currency.⁴

Using the figures in a budget

For a business that receives foreign currency or pays overseas suppliers, exchange-rate assumptions affect the Rwandan-franc value of income and costs. Record the currency pair, the date and the source of each rate used in a budget. If revenue and expenses are in different currencies, compare the timing of receipts and payments as well as their values. The BNR’s reported currency movements show why it is useful to keep assumptions tied to a defined period rather than treating a single quotation as permanent.^1,2

Residents and visitors exchanging money should distinguish a published reference quotation from the actual terms offered for their transaction. Check whether the displayed rate is a buying or selling rate, and confirm the total amount payable or received before proceeding. For borrowing or saving, compare the bank’s customer rate and conditions rather than using the CBR as a substitute. Inflation figures also need their period: a monthly or quarterly reading is not interchangeable with an annual forecast.^1,2

Keep these distinctions clear when comparing financial figures.^1,2,3

• Separate the CBR from a commercial bank’s loan or deposit rate.
• Label inflation with its reported period, or identify it as a forecast.
• Use the relevant buying or selling quotation for an exchange.
• Record the date and currency pair for each exchange-rate assumption.

Source: National Bank of Rwanda: Raises the Central Bank Rate to 8.75 percent as inflation remains elevated (August 2026); National Bank of Rwanda: BNR - National Bank of Rwanda; National Bank of Rwanda: Exchange Rate Table^1,2,3

BNR indicators may relate to different dates: the homepage pairs an August 2026 CBR with September 2026 inflation, while the MPC release describes the August decision and its projections. For a current policy indicator or currency quotation, check the latest BNR update; for a specific loan, deposit, exchange or transfer, confirm the transaction terms with the financial provider.^1,2