Political sketch
Formerly part of German East Africa and Ruanda-Urundi. Independent from Belgium on 1 July 1962.
Burundi has three ethnic groups: the Twa, probably its first inhabitants but today only a fraction of the population; the Hutu; and the Tutsi. The Tutsi subjugated the more numerous Hutu, and the Twa, and established a kingdom with the other two tribes as subordinate castes. In 1885, European powers meeting at the Berlin West Africa Conference assigned Burundi to the German sphere of influence, with neighboring Tanganyika (now part of Tanzania). The first German resident official did not arrive until 1906. After the outbreak of the First World War in Europe in 1914, Belgian troops from neighboring Belgian Congo (now Congo-Kinshasa) conquered Burundi and Rwanda in 1916. The League of Nations made Ruanda-Urundi (now Rwanda and Burundi) a Belgian mandate on 20 July 1922. The mandate was replaced by a United Nations trusteeship on 13 December 1946. Belgian rule, which gave preference to the Tutsi in a number of respects, intensified ethnic hostility.
Burundi became independent on 1 July 1962 as a Tutsi kingdom. The years just before and immediately after independence were marked by politically motivated assassinations of important figures. In May 1965, Hutu won a majority of seats in the parliamentary elections, but rather than appoint one of their representatives as prime minister, the king (mwami) appointed his personal secretary. On 19 October 1965 Hutu military officers rebelled. That coup failed, but a Tutsi-led military coup in November 1966 ended the monarchy. The new government purged Hutu in the government and military. In 1970 the Hutu again tried to take power but were repressed. The former king unsuccessfully tried to retain power in 1972. After he failed, a civil war broke out later that year. Renewed fighting occurred in 1973, in which many Hutu were massacred. Further military coups occurred in 1976 and 1987. In June 1993 the first Hutu president was elected. He was assassinated in an attempted coup by Tutsi military officers in October 1993. Ethnic violence flared anew. Another Hutu president died with the president of Rwanda in a airplane crash on 6 April 1994; Hutu extremists opposed to coexistence with the Tutsi were suspected, though the episode remains mysterious. On 25 July 1996 the military overthrew the Hutu president and installed a Tutsi. Ethnic tension and sporadic fighting continue today (2005). In November 2001, a three-year interim government with a Tutsi president and Hutu vice president was established, but some fighting continues within Burundi and in neighboring Congo-Kinshasa, where guerillas have established bases. Throughout its history as an independent nation, ethnic tensions in Burundi have been closely connected with similar tensions in neighboring Rwanda.
Wars since 1500
First World War in East Africa, 1914-1918 (Germany against United Kingdom, Belgium, and Portugal); Hutu Rebellion of 1965; Hutu Rebellion of 1970; Burundian Civil War of 1972; Burundian Massacres of 1988; Burundian Civil War of 1993-present (2005).
Convertibility
German colonies:
During the First World War, Germany was cut off from its colonies. Germany's African colonies, surrounded as they were by the colonies of Allied countries, were cut off from one another. Therefore convertibility among them in effect ceased in August 1914. All German colonies were conquered during the war; those in Africa were annexed by Belgium, France, South Africa, or the United Kingdom.
Belgian colonies:
During the First World War, the German army occupied most of Belgium. The German campaign of submarine warfare cut off shipping between Belgium and its colonies, and from December 1914 to June 1919 the Congolese (Belgian Congo) franc was not convertible into the Belgian franc. The pound sterling became its anchor currency. Convertibility resumed after the war ended and shipping resumed. During the Second World War, the German army occupied all of Belgium in May 1940. Belgian colonies in Africa sided with the Allies, so the Congolese franc ceased to be convertible into the Belgian franc. It was attached to sterling until Belgium was liberated in the second half of 1944.
Belgium introduced exchange controls during the Second World War on 10 May 1940. In Belgian Congo and Ruanda-Urundi (now Congo-Kinshasa, Rwanda, and Burundi), exchange controls were imposed on 10 March 1941 (Banque Nationale du Rwanda annual report 1964/1971: 12). Apparently these were in addition to the controls Belgium had previously imposed. Belgium had a dual exchange rate from 1 April 1955 to 4 March 1990; it abolished all exchange rate controls on 5 March 1990.
Burundi alone:
Burundi continued exchange controls inherited from the period of Belgian colonialism. It abolished the monopoly of the central bank over gold transactions on 19 September 1983.
Other
Defaults on or restructurings of debt to the private sector (mainly from Purcell and Kaufman 1993 and Standard & Poor's 2004): None.
Banking crises (data since 1970s mainly from Caprio and Klingebiel 1999 and Frydl 1999): Nonperforming loans high (at times 25% of total) 1994-2001?
Frankel and Rose (1996) list of currency crashes: 1984.
References
Primary sources:
--Laws and decrees:
Burundi. Gazette. 1962-present. Bulletin officiel du Burundi / Ikinyamakuru c'ibetegekwa mu Burundi. Bujumbura: Ministére de la Justice. (Successor to Ruanda-Urundi gazette.)
Germany. Overseas gazette. 1890-1921. Deutsches Kolonialblatt. Issued by Kolonial-Abtheilung des Auswärtigen Amts (1890-1907); Reichs-Kolonialamt (1907-1919); Reichskolonialministerium (1919-1920); Kolonialzentralverwaltung, Reichsministerium für Wiederaufbau (1920-1921). Berlin: Ernst Siegfried Mittler und Sohn.
Germany. 1892-1910. Die deutsche Kolonialgesetzgebung. Sammlung der auf die deutschen Schutzgebiete bezüüglichen Gesetze, Verordnungen, Erlasse, und internationale Vereinbarungen mit Anmerkungen und Sachregister. Edited by various persons. Berlin: D. Reimer, later Ernst Siegfried Mittler und Sohn, later Alfred Zimmermann. (The first volume was published in 1898 but covers the period starting in 1892.)
Ruanda-Urundi. Gazette. 1924-1962. Bulletin officiel du Ruanda-Urundi. Usumbura : Imprimerie du Ruanda-Urundi.
Tanganyika (German East Africa). Gazette. 1900-1914. Deutsch-Ostafrikanische Zeitung, with supplement Amtliche Anzeigen für Deutsch-Ostafrika and Deutsch-Ostafrikanische Rundschau, with supplement Amtlicher Anzeiger für Deutsch-Ostafrika. Dar Es Salaam: Deutsch-Ostafrikanische Zeitung. (Succeeded by Ruanda-Urundi gazette.)
--Publications of monetary authorities:
Banque du Congo Belge. Annual report. 1909-1959. Bilan et compte de profits et pertes au 30 juin ... ; rapport du Conseil d'Administration et du Collège des Commissaires présentés à l'Assemblée Générale du ... (1909?-1947); Bilan et compte de profits et pertes au 31 décembre ...; rapport du Conseil d'Administration et du Collège des Commissaires présentés à l'Assemblée Générale du ... (1947-1952); Rapports présentées à l'assemblée générale des actionnaires du ...; bilan et compte de profits et pertes au 31 décenbre ... (1952-1959?); English translation (1954?-1959) Report for the Year Ended 31st December ... Presented to the General Meeting of Shareholders on .... Brussels: Banque du Congo Belge. (The annual report in French is also in Dutch.)
Banque du Congo Belge. Bulletin. 1946-1960. Bulletin mensuel de la Banque du Congo belge (1946-1947); Bulletin d'informations générales et revue des marchés de la Banque du Congo belge (1948-1953); Bulletin mensuel de la Banque du Congo belge (1954-1960). Brussels: Banque du Congo Belge.
Banque Centrale du Congo Belge et du Ruanda-Urundi. Annual report. 1952/1953-1960? Assemblée Générale des Actionnaires deu ...; rapport sur les opérations de l'exercise social présenté par le Gouverneur au nom du Comité de direction; rapport du Collège des Censueurs. Brussels: Banque Centrale du Congo Belge et du Ruanda-Urundi.
Banque Centrale du Congo Belge et du Ruanda-Urundi. Bulletin. 1952-1960. Bulletin de la Banque Centrale du Congo Belge et du Ruanda-Urundi (1952-1960); Congo et Ruanda-Urundi: bulletin de la Banque Centrale (1960-1960). Brussels: Banque Centrale du Congo Belge et du Ruanda-Urundi.
Banque d'Émission du Rwanda et du Burundi. Annual report. 1960-1964. It is unclear whether the central bank ever published an annual report.
Banque du Royaume du Burundi. Annual report. 1964-1965. Rapport annual de la Banque du Royaume. Bujumbura: Banque du Royaume du Burundi. (Published in the central bank's bulletin.)
Banque du Royaume du Burundi. 1964-1966. Bulletin. Bulletin de la Banque du Royaume du Burundi. Bujumbura: Banque du Royaume du Burundi.
Banque de la République du Burundi. Annual report. 1966-present. Rapport annuel de la Banque de la République du Burundi. Bujumbura: Banque de la République du Burundi. (Published in the central bank's bulletin 1966-1968.)
Banque de la République du Burundi. 1967-present. Bulletin. Bulletin de la Banque de la République du Burundi (1967-1970); Bulletin trimestriel (1971-?); Notes trimestrielles (?-present). Bujumbura: Banque de la République du Burundi. (The annual report was published as issues of this publication.)
Deutsch-Ostafrikanische Bank. 1905-1916? Annual report. The bank must have issued an annual report, but I have found no reference to it.
--Web site of the current monetary authority (viewed 20 September 2005):
<http://www.brb.bi>
--Other publications or Web sites:
Belgium. Report on Ruanda-Urundi. 1922/1926-1960. Rapport sur l'administration belge du Ruanda-Urundi pendant l'année ... présenté aux Chambres part M. le Ministre des Colonies (1922/1926-1951); Rapport soumis par le gouvernment belge à l'Assemblée Générale des Nations Unies au sujet de l'administration du Ruanda-Urundi pendant l'année ... (1952-1960). Brussels: Établissements Générale d'Imprimerie (by 1950-1953; Imprimerie Fr. Van Muysewinkel (1954-1960).
Banque Nationale du Rwanda. 1964/1971. Annual report. Rapport annuel. Kigali: Banque Nationale du Rwanda. (Contains a summary of the monetary history of Burundi and Rwanda during the period when they had a common monetary authority.)
IMF. International Monetary Fund. 1946-1971 (irregular). Schedule of Par Values. Washington: International Monetary Fund.
Main secondary sources:
Banque de la République du Burundi. 1989. Un quart de siècle au service de la nation, 1964-1989. Bujumbura: Banque de la République du Burundi.
Banque du Congo Belge. 1959. Banque du Congo Belge, 1909-1959. Brussels: L. Cuypers.
Banque Nationale du Rwanda. Undated (viewed 20 July 2005). "Aperçu de l'histoire monétaire du Rwanda." Banque Nationale du Rwanda Web site, <http://www.bnr.rw/bnrnet/>. (Contains some information about the period of monetary union between Burundi and Rwanda.)
Benda Lema, François. 1978. Développement du système de crédit et de la circulation monétaire au Rwanda. Kigali: Banque Nationale du Rwanda. (Contains some information about the period of monetary union between Burundi and Rwanda.)
Deeken, Matthias. 1913. Das Geldwesen der deutschen Kolonien. Münster in Westfalen, Germany: Druck der Westfälischen Vereinsdruckerei.
IMF ARER. 1950-present. International Monetary Fund. Annual Report on Exchange Restrictions (1950-1978), Annual Report on Exchange Arrangements and Exchange Restrictions (1979-1988), Exchange Arrangements and Exchange Restrictions: Annual Report (1989-present). Washington: International Monetary Fund. (Contains information on IMF member countries and some of their dependencies.)
Leclercq, Hugues. 1998. "Du Congo au Zaïre, un siècle d'histoire monétaire." In Comité pour l'Histoire Économique et Financière de la France, La France et l'outre-mer: un siècle de relations monétaires et financières: 577-97. Ministère de l'Économie, des Finances et de l'Industrie. Paris: Imprimerie Nationale. (Contains some information about the period of monetary union among Congo-Kinshasa, Burundi, and Rwanda.)
Simonis, Raymond. 1981. "Une banque centrale éphémère: la Banque du Congo Belge et du Ruanda-Urundi, 1951-1961." Revue de la banque, v. (cahier) 15, November: 5-61. Brussels: Centre d'Études Financières.
Wehling, Franz. 1929. Die Entwicklung der deutsch-ostafrikanischen Rupie: ein Beitrag zur deutschen Kolonialpolitik. Münster in Westfalen, Germany: Aschendorffsche Verlagsbuchhandlung.
Wertz, J. 1950. "Quelques aspects de l'organisation financière du Congo Belge et du Ruanda-Urundi." In Encyclopédie du Congo Belge, tome III. Brussels: Éditions Bieleveld. (The first volume of the encyclopedia was published 1950. This volume was published in the mid 1950s, but has no date.)
Monetary authorities: Burundi
| Dates | Type | Name | Source | Remarks |
| 1916
-30 June 1952 |
private monopoly issue (as part of a currency union) | Banque du Congo Belge (headquarters Brussels, Belgium) | Banque du Congo Belge and government of Belgian Congo, agreement of 10 October 1927, cited in Banque Nationale du Rwanda annual report 1964/1971: 11 | Apparently Burundi had barter before the First World War. The currency of the Belgian Congo (today Congo-Kinshasa) was introduced in practice with the Belgian conquest of German-held Burundi and Rwanda. The Banque du Congo Belge established a temporary branch nearby in Kigoma, Tanganyika (now Tanzania) in late 1916 or early 1917 (Banque du Congo Belge 1959: 106). During the First World War, most of Belgium was overrun by the German army. The convertibility of Congolese notes into Belgian francs and gold was suspended and the Congolese franc was pegged to the pound sterling. Burundi and Rwanda were later officially included in the Banque du Congo Belge's sphere of operations by the 1927 agreement. The bank opened a branch in Usumbura (now Bujumbura) in 1922 (Banque du Congo Belge 1959: 204). It was the first bank in Burundi. Burundi and Rwanda used coins issued by the Treasury of the Belgian Congo. By the 1930s, the Banque du Congo Belge took over liability for coins from the Congo Treasury. |
| 1 July 1952
-21 September 1960 |
joint central bank (as part of a currency union) | Banque Centrale du Congo Belge et du Ruanda-Urundi (headquarters Brussels, Belgium) | Belgium, decree of 30 July 1951; Belgian Congo, Ruanda-Urundi, and Banque du Congo Belge, agreement of 30 June 1952; Ruanda-Urundi and Banque du Congo Belge, agreement of 4 June 1952, approved by Belgian arrêté of 24 June 1952; all cited in Belgium, report on Ruanda-Urundi, 1952: 44 | The Banque du Congo Belge lost the right of note issue upon renewal of its charter, as note issue was nationalized in accord with prevailing ideas of the time. The Banque du Congo Belge felt it would be hampered from competing with other commercial banks if it was at the same time supposed to be their central bank. (There is a statement to this effect in an undated letter in English entitled "The Status of the Bank After June 30, 1952," enclosed in the IMF's copy of the 1951 annual report of the Banque du Congo Belge.) The new central bank issued a single design of notes and coins for present-day Congo, Rwanda, and Burundi. It held most of its assets, in some years more than 90%, in the form of gold, curencies other than the Belgian franc, and Belgian francs. The second bank was the Banque Belgo-Africaine, Banque de Crédit de Bujumbura, or Banque Commerciale du Burundi (headquarters for all Usumbura [now Bujumbura], Burundi), all in Bujumbura, precise dates unknown. |
| 22 September 1960
-18 May 1964 |
another joint central bank (as part of a currency union) | Banque d'Émission du Rwanda et du Burundi (headquarters Usumbura [now Bujumbura], Burundi) | Ruanda-Urundi, royal decree of 21 August 1960, cited in Banque Nationale du Rwanda annual report 1964/1971: 12 | Congo left the currency union, leaving Rwanda and Burundi. Their joint central bank stamped separate notes and coins for Rwanda and Burundi starting in February 1964. Burundi joined the IMF on 28 September 1963. |
| 19 May 1964
-present (2005) |
own central bank | Banque du Royaume du Burundi / Banque de la République du Burundi or Ibanki ya Republika y'Uburundi from 28 April 1967 (headquarters for both Bujumbura, Burundi) | Burundi, law of 9 April 1964, cited in Banque de la République du Burundi Web site, viewed 15 September 2005; Ministry of Economy and Finance, Ministerial Decree 030/08, 9 May 1964, reprinted in Banque du Royaume du Burundi, bulletin, September 1964: 7-16, 21 | Following independence, political tensions led Rwanda and Burundi to dissolve their currency union. Burundi's central bank issues the coins as well as the notes. The change of the name of the central bank in 1967 reflected Burundi's change from a monarchy to a republic (Burundi, Decree-Law No. 1/60, 28 April 1967, cited in Banque de la République du Burundi Web site, viewed 15 September 2005). |
Exchange rate arrangements: Burundi
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 1906
-1916 |
pegged (as part of a currency union); 1.33-1/3 (German) East African rupees = 1 German mark | Germany, prime ministerial (Reichskanzler) order (Allerhöchste Ordre) of 23 December 1903, in Deutsche Kolonialgesetzgebung, v. 7: 283, cited in Deeken (1913: 39); prime ministerial decree (Verordnung) of 28 February 1904, in Deutsche Kolonialgesetzgebung, v. 8: 52, cited in Deeken (1913: 42) | The first German resident official arrived in 1906. In practice, local use of the colonial currency was quite limited. The (German) East African rupee was a decimal currency from 1904 onward. The name of the currency came from the Indian rupee, which was widely used along the coast of East Africa. | |
| 1916
-June 1919 |
pegged (as part of a currency union); 25.45 Congolese francs = UK£1 | Belgium, ordonnance-loi of 19 October 1914, cited in Wertz (1950: 582-3); Anglo-Belgian agreement of late 1914, cited in Banque du Congo Belge (1959: 101) | The currency of the Belgian Congo (today Congo-Kinshasa) was introduced in practice with the Belgian conquest of German-held Burundi and Rwanda. During the First World War, most of Belgium was overrun by the German army. Convertibility of Congo notes into Belgian francs and gold was suspended (Belgium, ordonnance-loi of 5 August 1914, cited in Wertz 1950: 582) and the Congolese franc was pegged to the pound sterling at the prewar rate. It is not clear if German East African rupees were allowed to be exchanged for Congolese francs, and if so at what exchange rate. The prewar exchange rate was 1.08 German East African rupees = 1 Congolese franc. The name "franc" for the currency came from the Belgian franc. | |
| June 1919
-24 October 1926 |
pegged (as part of a currency union); 1 Congolese franc = 1 Belgian franc | Belgian Congo, decision of June 1919, cited in Wertz (1950: 583) | In the early months of 1919, the Congolese franc appreciated so that less than 1 Congolese franc was worth 1 Belgian franc (Banque du Congo Belge 1959: 115). | Re-established the link to the Belgian franc after ship communication with Belgium resumed following the end of the First World War. (The first postwar ship from the Congo to Antwerp arrived on 7 Jnauary 1919 [Banque du Congo Belge 1959: 115].) The government of Belgian Congo decided to pay postal orders issued in Belgium at 1 Congolese franc = 1 Belgian franc. Previously, the market rate of exchange between the two currencies had been about 1 Congolese franc = 1.20 Belgian francs. Notes of the Banque du Congo Belge were made forced tender by Ruanda-Urundi, ordonnance-loi of 27 August 1924 (cited in Wertz 1950: 582). |
| 25 October 1926
-26 July 1935 |
pegged (as part of a currency union); 1 Congolese franc = 1 Belgian franc = 0.0418422g gold in practice | Belgium, decree of 14 November 1927, cited in Wertz (1950: 584); Wertz (1950: 583) | Returned to the gold standard with Belgium. The Congolese franc was officially given its own new definition in terms of gold by the decree of 1927; before then, the definition was that of the Belgian franc. | |
| 27 July 1935
-13 May 1940 |
pegged (as part of a currency union); 1 Congolese franc = 1 Belgian franc = 0.0301264g gold | Belgium, decree of 27 July 1935, cited in Wertz (1950: 585) | Devalued against gold with Belgium. | |
| 14 May 1940
-6 June 1940 |
pegged (as part of a currency union); 120 Congolese francs = UK£1 (implicitly, through Belgian franc), or 0.68 Congolese francs = 1 French franc | Anglo-Belgian-French monetary agreement of 14 May 1940; Belgium, Ordonnance Législative No. 61/Fin.-Dou., 14 May 1940; Ordonnance Législative No. 89/Fin.-Dou., 20 May 1940; all cited in Wertz (1950: 587) | During the Second World War, Belgium was overrun by the German army. This monetary agreement, to which the Belgian government aligned with the Allies was a party, did not explicitly mention the Congolese franc, but the Congolese franc was covered through the Belgian franc zone. The prewar exchange rate was approximately 115 Belgian francs = UK£1. | |
| 7 June 1940
-20 January 1941 |
pegged (as part of a currency union); 176.625 Congolese francs = UK£1 (implicitly, through Belgian franc), or 1 Congolese franc = 1 French franc | Belgium, ordonnance législative of 30 May 1940, cited in Banque du Congo Belge (1959: 136; see also p. 137); ordonnance législative of 21 June 1940, cited in Banque du Congo Belge bulletin, July-August 1952: 3; Ordonnance Législative No. 179/ Fin.-Dou., 18 July 1940, cited in Wertz (1950: 587) | Devalued with the Belgian franc when the Belgian franc was devalued to reattain its historical rate of 1 Belgian franc = 1 French franc. The ordonnance of 30 May 1940 imposed forced tender of notes of the Banque du Congo Belge and forbade the export of its notes and of foreign coins. | |
| 21 January 1941
-4 October 1944 |
pegged (as part of a currency union); 176.625 Congolese francs = UK£1 | Anglo-Belgian agreement of 21 January 1941; Belgium, Ordonnance Législative No. 107/Fin.-Dou., 10 March 1941; both cited in Wertz (1950: 587-8) | This agreement formally pegged the Congolese franc directly to the pound sterling, not just indirectly through the Belgian franc. Notes of the Banque du Congo Belge were made forced tender (Belgium, Ordonnance Législative No. 105/Fin.-Dou., 10 March 1941). | |
| 5 October 1944
-30 June 1952 |
pegged (as part of a currency union); 1 Congolese franc = 1 Belgian franc | Anglo-Belgian monetary agreement of 5 October 1944, cited in Wertz (1950: 588) | Returned to the Belgian franc as the anchor currency following the Allied liberation of Belgium during Second World War. On 18 December 1946, Belgium registered a parity with the IMF of 1 Congolese franc = 0.0202765g gold (IMF, 1st Schedule of Par Values, 18 December 1946: 5). (Technically, the parity was 0.02027675g gold, but the IMF only allowed six significant digits [Banque Centrale du Congo Belge et du Ruanda-Urundi bulletin, November 1957: 448]). Belgium changed the rate on 21 September 1949 to 1 Congolese franc = 0.0177734g gold (IMF, 9th Schedule of Par Values, 1 December 1949: 16). (Technically, the latter parity was 0.0177341557g gold.) | |
| 1 July 1952
-24 October 1956 |
pegged (as part of a currency union); 1 Congolese (Congo-Ruanda-Urundi) franc = 1 Belgian franc | Belgium, decree of 30 July 1951, cited in Wertz (1950: 592); Banque Centrale du Congo Belge et du Ruanda-Urundi bulletin, August 1952: 63 | The Banque du Congo Belge lost the right of note issue upon renewal of its charter, as note issue was nationalized in accord with prevailing ideas of the time. The new central bank issued a single design of notes and coins for present-day Congo, Rwanda, and Burundi. | |
| 25 October 1956
-21 September 1960 |
pegged (as part of a currency union); 1 Congolese (Congo-Ruanda-Urundi) franc = 0.0177734g gold = 1 Belgian franc | Belgium, decree of 25 October 1956, cited in Banque Centrale du Congo Belge et du Ruanda-Urundi bulletin, November 1957: 451 | Belgium defined the Congolese (Congo-Ruanda-Urundi) franc in terms of gold. Previously, there had been Belgian decrees from time to time ordering the Banque Centrale du Congo Belge et du Ruanda-Urundi, to value its gold at the same rate as Belgium's central bank, and to give any profit from revaluation of gold to the government of Belgian Congo. Howver, these decrees did not constitute a definition of the local currency as a weight of gold. | |
| 22 September 1960
-18 May 1964 |
pegged (as part of a currency union), dual rate; official rate 1 Rwanda-Burundi franc = 1 Belgian franc = 0.0177734g gold | Ruanda-Urundi, royal decree of 2 September 1960, cited in Banque Nationale du Rwanda annual report 1964/1971: 13 | The second, "free" rate floated, as did the second rate of the Belgian franc. It apparently existed from the start of the period, but IMF ARER (1964: 470) does not mention it until late in the period. | Ruanda-Urundi replaced the Congolese franc at 1 Ruanda-Urundi franc = 1 Congolese franc when Congo-Kinshasa left the currency union. The dual exchange rate replaced an "indirect" dual exchange rate that had existed because the Belgian franc had had a dual rate. |
| 19 May 1964
-10 February 1965 |
pegged, multiple rates; official rate 1 Burundi franc = 1 Belgian franc = 0.0177734g gold | Burundi, Ministry of Economy and Finance, Ministerial Decree 030/432, 14 April 1964 and Ministerial Decree 030/08, 9 May 1964; both reprinted in Banque du Royaume du Burundi, bulletin, September 1964: 19-21; IMF ARER 1965 (88-9) | There were foreign-exchange taxes of 5% and 20%, and a floating "free" rate. | Burundi replaced the Rwanda-Burundi franc at 1 Burundi franc = 1 Rwanda-Burundi franc when the currency union with Rwanda dissolved. Burundi registered a gold parity with IMF for the Burundi franc on 26 January 1965 (IMF, 39th Schedule of Par Values, 15 April 1965: 2, 10). IMF ARER (1965: 88-9) is vague on the starting date of the period, but my guess is that it occurred when Burundi and Rwanda separated monetarily. |
| 11 February 1965
-20 April 1970 |
pegged; 1.75 Burundi francs = 1 Belgian franc, or 1 Burundi franc = 0.0101562g gold | Burundi, Royal Decree 001/2, 10 February 1965, reprinted in Banque du Royaume du Burundi, bulletin, February 1965: 5 | Devalued and unified the exchange rate. | |
| 21 April 1970
-22 August 1971 |
pegged; 87.50 Burundi francs = US$1, or 1 Burundi franc = 0.0101562g gold | Banque de la République du Burundi annual report 1970: 58 | Switched to the US dollar as the anchor currency at the prevailing cross rate with the Belgian franc, to signal the reduced influence of Belgian colonial heritage. | |
| 23 August 1971
-29 December 1971 |
pegged; 87.50 Burundi francs = US$1 = 0.0101562g gold (nominally) | IMF ARER (1972: 68) | Gold convertibility for all countries ended in practice when the United States abandoned the gold standard on 15 August 1971. | |
| 30 December 1971
-1 November 1972 |
pegged; 87.50 Burundi francs = US$1 = 0.0101562g gold (nominally) | IMF ARER (1972: 68) | Burundi did not follow the devaluation of the US dollar against gold on 18 December 1971, but neither did it revalue against the US dollar. Burundi adopted wider margins on 11 January 1972 (IMF ARER 1973: 85). | |
| 2 November 1972
-19 February 1973 |
pegged; 87.50 Burundi francs = US$1, or 1 Burundi franc = 0.00935443g gold (nominally) | Burundi, Presidential Decree No. 1/22, 20 January 1972, cited in Banque de la République du Burundi annual report 1972: 72; Presidential Decree No. 500/180, 24 November 1972, cited in Banque de la République du Burundi bulletin, March 1974: 40 ; IMF ARER (1973: 85) | Devalued the nominal gold parity, belatedly following the devaluation of the US dollar against gold that had occurred on 18 December 1971. | |
| 20 February 1973
-7 August 1973 |
pegged; 78.7501 Burundi francs = US$1 or 1 Burundi franc = 0.00935443g gold (nominally) | Banque de la République du Burundi annual report 1973: 89; IMF ARER (1974: 82) | Did not follow the devaluation of the US dollar on 13 February 1973. | |
| 8 August 1973
-June 1974 |
pegged, dual rate; official rate 78.7501 Burundi francs = US$1 or 1 Burundi franc = 0.00935443g gold (nominally) | possibly Burundi, Ordonnance Ministerielle No. 550/72, 7 May 1973, cited in Banque de la République du Burundi bulletin, March 1974: 42; Banque de la République du Burundi, Communication No. 66 Rt. C/EXP, 1974, cited in IMF ARER (1974: 82-3) | Established a special exchange rate for coffee exports, which varied according to the length of time foreign-exchange proceeds were held before being sold. | |
| June 1974
-2 May 1976 |
pegged; 78.7501 Burundi francs = US$1 or 1 Burundi franc = 0.00935443g gold (nominally) | possibly Burundi, Ordonnance ministerielle portant fixation des droits de sortie sur le café vert arabica, Burundi gazette No. 10/74, 1 October 1974: 254, cited in Banque de la République du Burundi bulletin, March 1975: 30; IMF ARER (1975: 92) | Ended the special exchange rate for proceeds from coffee exports surrendered more than 3 months after shipment. | |
| 3 May 1976
-31 March 1978 |
pegged; 90 Burundi francs = US$1 or 1 Burundi franc = 0.00935443g gold (nominally) | Burundi, government decision of 3 May 1976, cited in Banque de la République du Burundi annual report 1975: 158; IMF ARER (1977: 100, 102 ) | Devalued against the US dollar, while keeping the notional gold parity unchanged. | |
| 1 April 1978
22 November 1983 |
pegged; 90 Burundi francs = US$1 | International Monetary Fund, Board of Governors, Resolution No. 31-4, 30 April 1976 ("Second Amendment") | RR: Parallel market premium in mid double digits from January 1983, when data begin. | The system of gold par values officially ended by agreement of IMF members. |
| 23 November 1983
-9 July 1986 |
pegged to rigid basket; 122.70 Burundi francs = 1 SDR | Banque de la République du Burundi annual report 1983: 119; IMF ARER (1984: 118) | RR: Parallel market premium in mid double digits. | Switched to the SDR as the anchor at a rate implying a 22.9% devaluation against the US dollar. |
| 10 July 1986
-December 1989 |
crawling peg to SDR (IMF: pegged to SDR, does not specify whether crawling or level) | Burundi, Presidential Decree No. 100/42, 9 July 1986, cited in Banque de la République du Burundi bulletin, March 1988: 33; Banque de la République du Burundi annual report 1986: 60, 107; IMF ARER (1987: 36) | RR: Parallel market premium in mid double digits, later declining to low double digits. De facto crawling band around US dollar. | Devalued and adopted a "soft" peg under which the rate was adjusted more frequently. The exchange rate, expressed in Burundi francs per SDR, was devalued as follows in terms of Burundi francs per SDR: 10 July 1986, 141; 8 August 1986, 144.40. Then month-end rates as follows (here and later in the paragraph, except as noted, from the IMF's International Financial Statistics): September 1986, 146.10; October 1986, 147.80; November 1986, 149.10; December 1986, 151.50. Then devaluations as follows: 5 January 1987, 153.4; 9 February 1987, 155.3; 16 March 1987, 161; 25 February 1988, 177.10. Then month-end rates as follows: March 1988, 181.60; May 1988, 186.30; June 1988, 191.10; July 1988, 196.00. Then devaluations (from news reports) as follows: 1 August 1988, 201; 23 November 1989, 221. |
| December 1989
-September 1991 |
pegged to rigid basket; 232.14 Burundi francs = 1 SDR | IMF ARER (1990: 75) | RR: Parallel market premium in high single digits and low double digits. | Ceased devaluations against the SDR. |
| September 1991
-31 March 1992 |
pegged to rigid basket; 273.07 Burundi francs = 1 SDR | IMF, International Financial Statistics database, viewed 4 October 2005 | RR: Parallel market premium in mid double digits. | A substantial devaluation. |
| 1 April 1992
-30 June 1999 |
flexible basket | Banque de la République du Burundi annual report 1992: 17 | RR: Parallel market premium 10-40% until data end December 1998. De facto crawling band around US dollar, with band width of +/-5%, to April 1996. Freely falling / managed float May 1996-May 1997. De facto crawling band around US dollar from June 1997. | Switched from the SDR to an undisclosed trade-weighted basket of currencies as the anchor. |
| 1 July 1999
-11 November 1999 |
managed float | IMF ARER (2000: 161, 166) | RR: De facto crawling band around US dollar / parallel market. | Floated; the central bank aimed to limit the spread between the official and parallel market rates. |
| 12 November 1999
-30 June 2000 |
managed float, dual rate | IMF ARER (2000: 161, 166) | The second rate was a
flexible rate, in which
about 5% of total
official transactions
occurred.
RR: De facto crawling band around US dollar. |
The unofficial parallel market rate became an official second rate as foreign-exchange bureaus were allowed to officially operate in the foreign-exchange market. |
| 1 July 2000
-present (2005) |
managed float | IMF ARER (2001: 161, 167) | RR: De facto crawling band around US dollar to December 2001, when data end. | Unified the exchange rate. Effective 2 January 2003 the central bank ceased setting a preannounced floor on bids at its foreign-exchange auction, though it reserved the right to decline bids (IMF ARER 2004: 173). Effective 8 December 2004 the central bank ceased its weekly foreign-exchange auction to set a mandatory reference rate for the transctions of commercial banks. Instead, the central bank now set its official exchange rate on the basis of a daily average of comercial bank rates (IMF ARER 2005: 179). |