Bank of the Republic of Burundi is the central bank of Burundi that was established under the name of “Bank of the Kingdom of Burundi ‘by the law of April 9, 1964 after the split caused by the Rwandan authorities of the time, the Bank of Issue of Rwanda and Burundi (BERB), common to both countries central bank since August 4, 1960. Before that date, the role of the Institut d’Emission was provided primarily by the Bank of Belgian Congo (BCB) from 1916 to 1952 and then by the Central Bank of the Belgian Congo and Rwanda-Urundi (BCCBRU).
Bank of the Kingdom of Burundi began operations May 19, 1964, after the liquidation of the BERB
Following the proclamation of the Republic on 28 November 1966, the official name of the Bank became “Bank of the Republic of Burundi (Decree-Law No. 1/60 of 28 April 1967 amending the law of 21 January 1965).
The Bank is active in promoting financial inclusion policy and is a member of the Alliance for Financial Inclusion. It is also one of the original 17 regulatory institutions to make specific national commitments to financial inclusion under the Maya Declaration during the 2011 Global Policy Forum held in Mexico.
Management of Bank of the Republic of Burundi
The task of management lies with the Management committee comprising of the Governor and a couple of Vice Governors
Role and Functions of Bank of the Republic of Burundi
- The Bank of the Republic of Burundi is responsible for the formulation and execution of monetary policies. It stresses on financial stability of the economy of the country.
- The bank of the Republic of Burundi is responsible for the issuance of currency or the Burundi Franc.
- It is the central bank that governs the commercial banks in Burundi.
- Like any other central bank, it provides finances when the commercial banks and other financial institutions of the state run out of liquidities.
- It regulates interest rates and by the policy of credit rationing influences monetary creation. The bank fixes the interest rates depending on the trends of the market.
- It also plays the crucial role of advising the government on matters related to the economy of the country and as the cash clerk of the State has the account of the Treasury.
- It also has the power to buy and sell gold and can well manage and detain exchange reserves of the country.