Burundi is a small landlocked country located in central Africa. The nation’s civil war that lasted four decades killed 300,000 and displaced over 1.2 million people, a Peace Treaty was signed in 2000. Ethnic fighting between Tutsi minority and Hutu majority is the root of this violence. Widespread poverty is prevalent for many of Burundi’s 6.3 million citizens. Several humanitarian issues remain for Burundi including a high HIV/AIDS rate at approximately 10 percent of the adult population whereby the life expectancy rate has fallen to 50 years.
Economic Statistics
GDP total as measured by purchasing power parity stands at $4.4 billion USD (2005) with corresponding GDP/Capita at $700 million USD (2005). GDP market at $740 million USD. Real GDP growth rate at 5.5 percent (2005), year 2006 estimated at 5 percent. Inflation for 2005 at 16.3 percent, 2006 forecasted at 7.8 percent. Current account deficit for 2003 at 23 percent of GDP, it has since narrowed. Official reserves were measured at $76 million USD equivalent (year 2005). No oil production, limited manufacturing, resource poor country.
CURRENCY: ISO Symbol ‘BIF’, Burundi franc. At time of currency review on March 18, 2006, the Burundi franc had an exchange valuation of 972 BIF to the US-dollar (USD). The country’s exchange rate regime follows that of composite (basket of currencies). Official and market exchange rates in 2003 had a 15 percent spread in valuation.
CURRENCY HISTORY: Burundi franc has been the official currency since 1960 when it replaced the former Belgian Congo franc which came into circulation in 1916. Steady devaluation of the franc during the 1990’s. Historical exchange rates include year 2005 at 1138 BIF to the USD, 2004 at 1100, year 2003 at 1082, 2002 at 930, 2001 at 830, 2000 at 720.6, 1999 at 563.5, 1998 at 477, 1997 at 352.3, 1996 at 302.7, 1995 at 249.7, 1994 at 252.7 and year 1993 at 242.
CURRENCY FORECAST: risk includes weather variances - agricultural. Both coffee and tea are major export earners for Burundi as agriculture is the mainstay industry as subsistence accounts for 90 percent of the population. Other currency risks include a fragile political framework, history of political violence & instability, regional instability with Rwanda and domestic terrorism from the threat of continued sporadic rebel conflicts.
