BIF - Burundian Franc

The History of Burundian Franc

The Burundi franc officially became the country's official currency in 1916 when Belgium occupied Burundi and replaced the German East African rupee with the Congo franc. In 1960, the Rwanda and Burundi franc was introduced, and Burundi began issuing its own franc in 1964. 

Additionally, Burundi planned to introduce a new common currency called the East African shilling for the five member states of the East African Community by the end of 2015. However, as of October 2023, these plans have not yet been implemented.

Burundian Franc denominations

Currently, the denominations of Burundi franc banknotes range from 10 BIF to 10,000 BIF, with smaller coin denominations used for daily transactions.

Burundian Franc coins

• In 1965, the Central Bank of the Kingdom of Burundi issued a 1 franc brass coin.

• In 1968, aluminum 1 and 5 franc coins, as well as a 10 franc nickel coin, were introduced.

• In 1976, a second series of 1 and 5 franc coins was released.

• In 2011, new 10 and 50 franc coins were introduced.

Burundian Franc banknotes

• From February 1964 to December 31, 1965, the Bank of Rwanda and Burundi issued banknotes with denominations of 5, 10, 20, 50, 100, 500, and 1,000 francs. These notes were marked with a diagonal hollow “Burundi” stamp for domestic use.

• In 1964 and 1965, the bank continued to issue notes with the same values as before.

• In 1966, the National Bank of Burundi re-stamped notes with denominations of 20 francs or higher, replacing “Kingdom” with “Republic.” Regular note issues began with denominations of 10, 20, 50, 500, 1,000, and 5,000 francs.

• In 1968, the 10 franc note was replaced by an equivalent coin.

• In 2001, the 2,000 franc note was introduced, followed by the 10,000 franc note in 2004.

• In 2015, Burundi released a new series of notes, with 10, 20, and 50 franc notes no longer considered legal tender. Only the 100 franc note ò the old series continues to circulate.

Exchange Rate Regime of the Burundian Franc (BIF)

The Bank of Burundi implements a floating exchange rate policy to regulate the exchange rate of the Burundian Franc. This policy is based on the currencies of countries with which Burundi has trade relations.

Exchange rate history of the Burundi Franc.

• Since the country’s independence in 1962, the Burundi Franc (BIF) was maintained at a stable rate against the U.S. dollar, with an exchange rate ranging from 50 to 100 BIF/USD. 

• In the 1990s, Burundi witnessed great political upheaval, concerning the civil war that accompanied by severe economical degradation. This caused the BIF/USD exchange rate to surge between 200 and 300 BIF/USD and reach levels of 600 to 800 BIF/USD by the end of the decade.

• In addition to the country’s political unrest, as well as declining exports, the scarcity of foreign currency in the early 2000s caused the BIF/USD exchange rate to fluctuate between 1,000 and 1,200. In the meantime, the decline in agricultural products further pressured the exchange rate, leading to a continuous depreciation of the currency.

• Since 2010, the value of Burundian Franc has shown no positive signs due to issues with inflation, budget deficits and lack of foreign reserves.

• In 2020, the exchange rate exceeded the threshold of 1,900 - 2,000 BIF/USD. 

• In recent years, the Burundian Franc has depreciated significantly due to the pandemic, and by 2023, the official exchange rate surpassed 2,800 BIF/USD, continuing to decline due to global and domestic economic challenges. 

Factors influencing the value of Burundian Franc BIF

• Political Stability: Burundi had faced political upheaval such as the civil unrest in the 1990s in the past, and now with the ongoing governance issues. Such political instability undermines confidence in the currency, which in turn negatively impacts its value.

• Export Performance: Burundi has traditionally relied on its export capabilities, particularly in agricultural products, which are essential for generating foreign exchange earnings. However, the pandemic has significantly impacted the global economy, resulting in a stagnant export market with fewer orders. This decline in exports places additional pressure on the currency.

• Economic Conditions: The strength of Burundian Franc is influenced by factors such as GDP growth, unemployment rates, and overall economic stability. Economic difficulties, particularly those arising from periods of political unrest or instability, can result in a decline in the value of the currency.

• Inflation Rates: Inflation has been a chronic problem that Burundi has to face up to. This contributed to the depreciation of the BIF over time, which in turn eroding purchasing power and negatively impacting the value of a currency.

On the whole, the value of the Burundian Franc (BIF) is often influenced by various factors, including economic conditions, politics, inflation, and exchange rates with other currencies. Recently, the BIF has experienced depreciation against stronger currencies like the USD and EUR. 

For specific and updated values of Burundian Franc, you can refer to a currency conversion tool to check the current exchange rate.