The central bank has defended the new regulation governing the operations of foreign exchange business in the country, saying it is simple and business-friendly. The National Bank of Rwanda (BNR) Regulation Governing Forex Bureaus was introduced in October to streamline the licensing and supervising of forex bureaus by setting minimum standards. A section of forex dealers is however opposed to the regulation, calling it "harsh" and likely to edge many out of business as its implementation is cumbersome and costly for small businesses. Industry sources say some forex bureaus have already been penalised for flouting the new regulation. "About 10 forex bureaus have been closed for failing to adhere to the regulation. Their licences were suspended by BNR," said Jean Claude Rutayisire , director, Gemod Forex Bureau Ltd. READ: Central bank cracks whip on forex dealers Mr Rutayisire is among the forex dealers who welcomed the regulation, saying it has protected the economy from unscrupulous currency dealers. "Some of the suspended businesses were not recording their transactions while others were taking deposits from their peers in the industry," he claimed. Those opposed to the regulation cite Article 13, which compels foreign exchange dealers to record all transactions and keep proper documentation. Forex dealers also have to issue receipts for every transaction and report the volume of business to the central bank. Some have complained that this translates into additional costs since every forex bureau will need to acquire a computer and hire staff to operate it, buy data bundles to be connected to the Internet, incur electricity expenses and have a photocopier. Issue receipts, report online The regulation also obliges dealers to issue receipts, which must contain reporting requirements. BNR Governor John Rwangombwa described the regulation as simple and business friendly. "The new regulation simplifies issues which were in the old regulation," he said. "It is not harsh. "They were not used to being regulated. I do not think the regulation is harsh; it's because it's a new practice." The director of financial stability at BNR, Joy Ntare, also defended the regulation. On Article 21, which is also contentious as it requires forex bureaus to report online all transactions to the central bank, she said reporting helps the regulator to monitor the performance of the financial sector.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- U.S. to Relinquish Gov't Control Over Internet
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Some California Cities Seeking Water Independence
- Will Missing Malaysian Jet Prompt Aviation System Change?