Burundi : the US dollar drops — currency exchanges cry losses, consumers wait for price drops

SOS Médias Burundi

Bujumbura, October 18, 2025 — This decline comes amid a chaotic economic climate. The small east African nation is experiencing the worst economic crisis in its history, marked by shortages in almost every sector. The fuel shortage, which has lasted for nearly five years, remains the most threatening, paralyzing much of daily life.

The foreign exchange market in Burundi is currently experiencing an unusual trend, marked by a sharp decline in the US dollar. This drop is surprising both currency exchanges and consumers, in an already tense economic climate.

According to data released on Friday by the Burundi Central Bank (BRB), official rates have not changed significantly compared to previous days. They remain fixed as follows :

1 US dollar : 2,935.7 Bif

1 Kenyan shilling: 22.7616 Bif

1 Tanzanian shilling: 1.1982 Bif

1 Ugandan shilling: 0.8448 Bif

1 Rwandan franc: 2.0289 Bif

But on the parallel market, the drop is spectacular. On Friday, the dollar was trading around 5,500 Bif, compared to over 7,500 Bif just a few weeks ago.

The Burundian franc also appears to be regaining ground against other regional currencies, marking a temporary strengthening of the national currency.

Foreign exchange bureaus in difficulty

This rapid decline has disrupted the activities of money changers, particularly those operating in licensed foreign exchange bureaus or in the parallel market. Many report suffering considerable losses after stockpiling dollars in anticipation of a rise.

“I’ve been a money changer for over ten years. I used to keep part of my income in dollars, thinking it was a safe bet. But this week, everything changed : the dollar fell sharply, and I lost almost half of my value in a few days,” says Martin, a currency changer at the Chez Siyoni market in northern Bujumbura.
“The foreign exchange market is almost paralyzed. I don’t know how we’re going to get through this,” he adds.

Some exchange offices have even suspended operations while they monitor market developments, fearing they might sell at a loss.

Disappointed consumers : “Prices remain the same”

Despite the falling dollar, the prices of goods and services have not yet dropped, much to the dismay of consumers.

“When I learned that the dollar had fallen sharply, I thought it would affect prices. But nothing has changed : rice, flour, everything is still just as expensive,” laments Micheline, a customer at the so-called Chez Siyoni market north of the commercial capital, one of the busiest in Bujumbura.
“We were always told that the high cost was due to a lack of foreign currency. Now that it’s available, we expected to see a difference. But for now, it’s only in the ads, not in our pockets,” she adds.

Economic authorities are urging patience and are assuring that the domestic market will gradually adjust.

Possible causes of the drop

Several sources believe that the drop in the black market rate is the result of several factors :

a heavy circulation of the Burundi franc in search of foreign currency;

the influx of foreign currency during recent international sporting events in Burundi;

the release of dollars illegally held by certain senior officials, worried about a possible devaluation of their assets following the latest economic reforms.

“I think some authorities emptied their coffers for fear of being exposed. This could ultimately benefit ordinary citizens, especially those who only ate once a day,” said a Bujumbura resident.

Economists’ analysis

Economists point out that this decline is not linked to an improvement in exports, particularly of coffee or tea, which are still declining.
Rather, they believe it stems from the BRB’s restriction of access to foreign currency to authorized importers only.

They recommend that the government maintain monetary austerity in order to consolidate the value of the Burundi franc and stabilize consumer prices.

Suspended markets

Faced with volatile exchange rates, several exchange offices have suspended operations. The Kenya shilling, which was still trading at 55,000 Bif for 1,000 KSh last week, is now worth only 35,000 Bif.

Some operators are talking about a “waiting” market, while others fear a new surge if BRB controls are relaxed.