Burundi : BRB bets on the Chinese Yuan, the civil society fears adverse effects

SOS Médias Burundi

Bujumbura, August 6, 2025 — The Burundi Central Bank (BRB) has authorized, in a pilot phase, the use of the Chinese Yuan (RMB) to pay for imports from China. Twenty Burundian companies operating in the production, industry, and processing sectors are affected by this initiative, which could mark a turning point in the country’s trade.

In a letter dated July 31, the BRB stated that this measure aims to diversify international payment methods, without replacing the US dollar or other hard currencies. Specifically, commercial banks will act on behalf of their clients by submitting payment requests to the central bank, accompanied by a mandatory information sheet.

Concerns about economic risks

While the BRB presents this initiative as a trade facilitation tool, it is not unanimously supported. Faustin Ndikumana, national director of the Speech and Actions for the Revival of Consciences for the Mentality Change (PARCEM), urges caution :

“The government should first commission serious economic studies before committing the country to such a change,” he told SOS Médias Burundi.

According to him, Burundi risks finding itself in a situation of increased dependence on China. He warns against the risk that this measure could ultimately become a disguised obligation for economic operators to import exclusively from China.

Ndikumana also raises several unanswered questions :

Does Burundi export enough to China to generate reserves in Yuan?

Can the Burundian diaspora send remittances in this currency?

Will the country have to rely on loans or Chinese aid to fund this mechanism?

He cites, as an example, the recent interest expressed by a Chinese company in purchasing Burundian coffee in Yuan, which, he believes, could reduce hard currency revenues and further weaken the balance of payments.

Independent experts warn

Independent economists interviewed by SOS Médias Burundi point to several risks associated with this strategy. They notably mention :

the low convertibility of the Yuan on international markets,

the absence of a clear and controlled exchange rate,

the possible exclusion of certain traders who do not yet have the necessary support to handle this currency.

They point out that the introduction of the Yuan alone cannot resolve the economic crisis facing the small east African nation.

“Without accompanying measures, this decision risks exacerbating inequalities between operators and increasing dependence on a single trading partner,” they conclude.

The BRB has not yet announced a timeline for a possible extension of this measure to other economic sectors.