B.P. 705 BUJUMBURA Tél: (257) 22222744 - Fax: (257) 22223128 - E-mail: email@example.com
By its statutes, B.R.B. fundamental mission the definition and implementation of monetary and exchange rate policy . To this end , it ensures the maintenance of monetary stability and the continuation of a policy of credit and foreign exchange conducive to the harmonious development of the economy (Article 2 of Law No. 1/ 036 of 7 July 1993 ).
In this context, it performs several functions which are grouped as follows:
1. Issue of currency
The B.R.B. has the exclusive privilege of issuing banknotes and minting metal parts, which are denominated in francs and sole legal tender power in the territory of the Republic ( art. 25 & 26).
The monetary unit of the Republic is the Burundi franc (BIF ) whose value relative to other currencies is currently determined by the weighted average rate applied to purchases and sales of currencies made the previous day by commercial banks .
2 . Conduct of monetary and credit policy
The B.R.B. conducts monetary and credit policy using instruments that act on certain monetary aggregates. After exercising direct control over the creation of money by the credit control and regulation of interest rates, the Bank introduced indirect instruments based on market mechanisms in the allocation of credit by financial institutions and determination of interest rates by the latter. The Bank shall, in particular the rate of interventions based on the objectives of monetary policy ( Art. 45 ).
3 . Banker Financial Institutions
The B.R.B. is - like any central bank - the bank of banks. It is the lender of last resort , that is to say, when commercial banks or other financial institutions no longer have enough cash to give credits they can use it either for rediscounting commercial paper is to solicit advances against cash collateral trading securities or treasury bills (Art. 46 & 47).
4. Cashier, banker and adviser to the State
As cashier of the State, the B.R.B. holds in his books Treasury accounts and execute cash transactions of the latter.
The B.R.B. is also called under art . 33 of the Statute to exercise the role of banker of the state.
Finally, as the regulator of the exchange and control of money and credit, BRB plays the general role of adviser to the Government for all the problems related to these areas and the economy in general ( art. 36).
5. Exchange Control
The B.R.B. is responsible for the custody and management of foreign exchange reserves of the country and can buy or sell gold . As such, it is entitled to enact regulations on foreign currency transactions , a role commonly referred to as " Regulation and exchange controls " (art. 41-43 )