Rwanda: Sixth Review Under the Policy Support Instrument and Request for Extension of the Policy Support Instrument—Staff Report; Press Release
IMF Staff Country Reports, June 25, 2013
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- Rwanda: Sixth Review Under the Policy Support Instrument and Request for Extension of the Policy Support Instrument—Staff Report; Press Release
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Bibliographic details
- Published: June 25, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475556797.002
Economic response and macroeconomic conditions
- Rwanda responded to lower aid by tightening policies and drawing on its foreign reserves to cushion the impact on the economy.
- Economic activity has been resilient despite lower aid inflows.
- The commitment to tighten the monetary stance while allowing greater exchange rate flexibility is encouraging.
- Subject areas highlighted: Budget planning and preparation, Current spending, Exchange rate flexibility, Exchange rates, Expenditure, Foreign exchange, Monetary base, Money, Public financial management (PFM).
- Keywords noted: broad money, Budget planning and preparation, consumer price inflation, CR, Current spending, Exchange rate flexibility, Exchange rates, foreign exchange market pressure, Global, inflation low, inflation pressure, ISCR, Monetary base.
Fiscal framework and budgetary policy
- The agreed framework for the FY2013/14 budget is in line with Policy Support Instrument (PSI) objectives.
- The government intends to develop a comprehensive plan for enhancing domestic revenue mobilization over the medium term; this intention is described as timely.
Development strategy and structural policies
- Rwanda’s new poverty reduction strategy (EDPRS2) is referenced as part of the policy context and reform agenda.
- Continued emphasis on domestic revenue mobilization and prudent macroeconomic management is implied by the PSI alignment and monetary policy stance.