On Thursday, February 12, 2026, the Minister of Finance and Economic Planning, Yusuf Murangwa, told lawmakers that the current law was enacted in 2017 and revised in 2021.
However, he said, recent assessments, including a 2024 safeguards review by the International Monetary Fund (IMF), found legal gaps in the law governing BNR and recommended reforms to address them.
He emphasized that the revision aims to establish a stronger operational framework aligned with the central bank's mandate, enhance its autonomy in staff management, governance and financial management, strengthen transparency in cooperation, and reinforce accountability.
While some provisions will remain unchanged, others will be revised and new ones added so that BNR's legal and regulatory framework aligns with governance practices used by central banks worldwide and with international standards.
One major change concerns capital increases from the government. The current law does not clearly provide for recapitalizing BNR when its capital declines. Article 67 of the draft law establishes a clear procedure requiring the government to cover any capital shortfall within six months after receiving BNR's request.
Murangwa noted that such recapitalization would be rare and used only when it is the sole way for BNR to maintain the financial independence necessary for sustainable operations.
The draft law also protects BNR leaders, staff, agents and decision-making bodies from external interference when exercising their authority or performing their duties. The existing law does not fully guarantee institutional autonomy in implementing BNR's powers or achieving its objectives. The revised Article 4 strengthens independence for staff, representatives and decision-makers, shielding them from outside influence.
Another proposed change limits the powers that the Board of Directors can delegate to the Governor of the central bank. Supervisory and oversight responsibilities would no longer be transferable to the Governor.
The bill also gives BNR authority to impose administrative sanctions on individuals or legal entities that fail to comply with its regulations, regardless of criminal proceedings, while remaining consistent with other applicable laws.
Regarding governance, the number of Board members would increase to at least 11, selected based on expertise in accounting, risk management, law, technology or other fields relevant to BNR's work. To strengthen independence, no more than 30% of Board members would be public officials, excluding the Governor, Deputy Governor and one member drawn from academia or research.
The proposal also allows the appointment of non-BNR members to the Monetary Policy Committee and the Financial Stability Committee to reinforce their independence.
The draft law reaffirms that BNR manages Rwanda's currency, while the authority to change the currency remains with the President of the Republic as provided by the Constitution. BNR would retain an advisory role on currency changes.
Another expected reform expands BNR's powers in foreign exchange management and protection of other financial assets.
The current law provides limited authority in this area. Given rapid financial sector growth and the increasing range of financial instruments, permitted operations would expand to include currency and other eligible assets such as support for cross-border trade, collateral instruments and a wider range of approved investments.
Murangwa added that, to strengthen financial stability and sound monetary management, the law will also establish a clear timeframe for repayment of loans BNR grants to the government.
Finally, the bill formally establishes an internal audit function within BNR (as provided in Article 63 of the draft law) to enhance oversight, risk management and operational effectiveness.
IGIHE
Source : https://en.igihe.com/news/article/rwanda-moves-to-amend-law-governing-the-central-bank
