Currency plays a key role in shaping a country’s economic identity, facilitating trade, and reflecting its unique history and culture. For the East African nation of Burundi, the Burundi Franc (BIF) serves as its official currency. Whether you’re planning to visit this spectacular country, considering business opportunities, or simply curious about its economic framework, understanding the Burundi Franc offers a window into the financial soul of this fascinating nation.
This blog will cover the essentials of the Burundi Franc, including its history, usage, value in the global market, and how to exchange or transfer funds in BIF safely and efficiently.
What is the Burundi Franc?
The Burundi Franc (symbol BIF) is the official currency of Burundi, a small yet culturally rich country located in East Africa. Introduced in 1964, the BIF replaced the East African Shilling, which had been in use prior to the establishment of Burundi as an independent state.
Today, the BIF is divided into 100 centimes, although centime coins are rarely used in practice. Both coins and banknotes are used for transactions, with banknotes being far more common due to the relatively low purchasing power of the currency.
How does the Central Bank of Burundi manage the BIF?
The Central Bank of Burundi (Banque de la République du Burundi) oversees and regulates the issuance of the Burundi Franc. The bank is responsible for ensuring monetary stability, fighting inflation, and promoting growth in the Burundian economy. However, like many currencies from developing economies, the BIF has faced challenges like inflation and fluctuating exchange rates due to factors such as political instability and external economic pressures.
A Brief Overview of BIF Denominations
The BIF features a range of banknotes and coins to facilitate everyday transactions. Here are the main denominations used:
Banknotes:
- 500 BIF
- 1,000 BIF
- 2,000 BIF
- 5,000 BIF
- 10,000 BIF
Coins:
- 1, 5, 10, and 50 Francs (though these are rarely used due to their low value)
Most transactions in Burundi are conducted with banknotes, especially the higher denominations like the 5,000 BIF and 10,000 BIF, which are more practical given inflationary trends.
The Value of the Burundi Franc in the Global Market
The Burundi Franc is considered a non-convertible currency, meaning it is not widely traded on international forex markets. Its value is relatively stable but lower compared to major global currencies like the USD or Euro. As of now, economic factors such as limited exports, political challenges, and a predominantly agricultural economy contribute to its modest valuation.
For example:
- 1 USD typically exchanges to approximately 2,800–3,000 BIF, although rates can vary slightly depending on fluctuations in the market or the method of exchange used.
If you’re sending or receiving money to/from Burundi, it’s crucial to check real-time exchange rates through trusted financial services to ensure you’re getting the most accurate and competitive rates available.
Using and Exchanging the Burundi Franc
If you’re planning to visit Burundi or conduct transactions involving the BIF, here are a few practical steps to keep in mind:
1. Payment Practices in Burundi
Burundi is predominantly a cash-based economy, and you’ll rarely find businesses that accept credit cards or digital payments, especially outside urban centers like Bujumbura or Gitega. Ensure you have enough Burundi Francs in hand for everyday transactions, such as paying for food, transportation, or accommodations.
2. Where to Exchange Currency
If you’re exchanging foreign currency into BIF, you’ll find several options:
- Banks are the safest and most reliable places to exchange money.
- Hotels often offer currency exchange services, but beware of higher rates compared to banks.
- Bureaux de change provide competitive rates but may vary in reliability.
- It is not recommended to exchange money through unofficial street vendors or black-market channels due to risks of fraud.
3. Sending Money to Burundi
For reliable and secure international money transfers, opt for services like Remitly that allow you to send BIF with competitive exchange rates and low fees. These platforms are trusted globally to ensure your funds reach recipients safely.
4. ATM Usage
ATMs are available in major cities but are often limited in rural areas. Withdrawals can also be subject to daily limits and transaction fees. Ensure your card is enabled for international transactions and carry cash for backup.
Economic Challenges and Opportunities with the Burundi Franc
Like many developing economies, Burundi faces challenges balancing economic growth against inflation and currency stability. Factors like political uncertainties, reliance on agricultural exports (such as coffee and tea), and limited foreign investment all influence the value of the Burundi Franc.
However, there are also signs of budding economic opportunities:
- Regional Cooperation: Burundi’s participation in regional organizations like the East African Community (EAC) creates new opportunities for trade and investment.
- Agricultural Modernization: With agriculture being a major source of income, investment in this sector could lead to substantial economic growth.
- Tourism Development: From Lake Tanganyika to the Kibira National Park, Burundi has untapped tourism potential that could unlock future foreign revenue.
Key Takeaways for Businesses and Individuals
For businesses considering investment in Burundi or individuals looking to engage with the local economy, understanding the Burundi Franc is crucial. Whether for trade, tourism, or remittances, aligning financial plans with the current realities of the BIF ensures smoother transactions and better outcomes.
Here’s why understanding the currency matters:
- It allows for fair negotiations and pricing in contracts or purchases.
- It ensures you maximize exchange rates when converting foreign currency.
- It highlights the importance of secure transfer methods to avoid financial risks.
Plan Ahead for Secure and Seamless Transactions
Whether you’re visiting Burundi, engaging in trade, or simply sending money to loved ones, managing the Burundi Franc doesn’t have to be complicated. Use trusted tools to track exchange rates, choose reputable money transfer services for international transactions, and always plan for cash use in more remote areas of the country.
At Remitly, our mission is to simplify international transfers for customers worldwide. If you’re looking to send money to Burundi, we provide a fast, affordable, and secure way to ensure your funds reach their destination.
Start your transfer today with Remitly and enjoy peace of mind knowing your transaction is in safe hands.