NATIONAL BANK OF RWANDA ANNUAL REPORT July 2012-June 2013

It is an honour and privilege to present to you the National

Bank of Rwanda annual report, my very first as new

Governor. From the onset, I wish to sincerely congratulate

my predecessor, Honourable Ambassador Claver Gatete

from whom I took over in February 2013, for the solid

foundation he laid for the achievements we are proud to

report herein.

The financial year 2012/2013 was challenging for decision

makers in monetary, financial and economic fields

worldwide. Global financial market volatility continued,

following the combined effect of subdued economic growth,

weak demand, and sovereign debt issues in some countries,

as well as unconventionally low interest and quantitative

policies adopted by Central Banks in leading economies.

It is gratifying to see that, despite the challenging international economic environment and

disruption in donor funds inflows, the national economy continued to perform well, growing by

9.1% in 2011/2012 and 6.8% in 2012/2013. The FRW managed to remain relatively stable visa-

vis USD, only depreciating by 1.8% between December 2012 and June 2013 against 4.5% in

2012. The National Bank of Rwanda succeeded to achieve its main mandate of price stability and

financial sector stability, ensuring that inflation was contained below 5% while all financial sector

soundness indicators were in good shape.

Looking forward, the Bank will continue safeguarding prudent monetary policy and well-coordinated

economic policies as challenges and uncertainties in the economic environment are likely to

remain in the near future. The Bank will step further its efforts to develop research, modeling

and analytical capabilities. Furthermore, the Bank will ensure modern management information

systems such as Core Banking, Enterprise Resource Planning (ERP) and Data Warehouse are

completed to support effienciency and effectiveness.

As we reflect on the past performance of the Bank, we wish to take this opportunity and express

our sincere gratitude to our key domestic and international partners in managing our economy.

I wish you an enjoyable reading.

John RWANGOMBWA