Staff Writer
The new 5,000 and 10,000 Burundian franc banknotes that have recently entered circulation are causing a stir among Burundians in Bujumbura. It happens at a time when they are having trouble exchanging their old notes for new ones, especially after the deadline passed in June.
According to economist and head of the PARCEM think tank Faustin Ndikumana, “This is the beginning for the government to be able to start reforms, a necessary awareness to really break this cultural conservatism.” According to Ndikumana, “(In) Burundian culture, each person wants to keep his wealth at home.”
But few people seem to share this opinion. At least not in the markets, where many people have trouble conducting business because they lack the new currency notes.
“Your old bills don’t get paid off when you don’t have a bank account. It’s not feasible. When we have no way to add to an account, they push us to open accounts with the bank. A vendor at the COTEBU market, Chantal Mugisha, said.
The two denominations, valued $1.77 and $3.54 respectively, are the highest of the six in use in the nation, which has a $270 per capita GDP.
The Bank of the Republic of Burundi ascribed the change to what it termed an increase in circulation in the “informal circuit” that caused volatility in the operations of financial institutions. In its press release, it also mentioned how the lack of these currencies in banks had caused activity to become unstable.
As of June 7, all 5,000 and 10,000 franc notes were revoked and replaced with new ones that were dated November 7, 2022. Holders have a 10-day period ending on June 17 to deposit the Old Notes in their accounts and, if necessary, open a bank account. Only until June 17 were the old notes to be accepted as lawful money.
“I have a collection of antique banknotes totaling 170,000 Fbu (Burundian francs, or 54.8 euros). I heard that if I don’t have new bills, Gatumba won’t be able to provide me gas, so I needed gas. I’m unsure how to transfer these notes into my boss’s bank account because I have to remain in Bujumbura.
The Bank of Burundi further restricted cash deposits by individuals to a total of 10 million francs ($3,543) and by legal companies to a total of 30 million francs per day and per account. The top bank in Burundi has said that it will send representatives to remote places to help with the exchange.
