Regulatory Alerts2026-01-01
Regulation of the Interbank Market in Local Currency (BIF) Online: A Major Step Toward Monitoring Interbank Liquidity, Controlling Inflation, and Improving Monetary Policy Transmission in Burundi
The Bank of the Republic of Burundi issued Regulation No. 01/2026 to establish and modernize the local currency (BIF) interbank market, mandating electronic trading via the Refinitiv platform and specifying operational rules for short-term lending. The regulation defines eligible participants, sets daily operating hours from 9:00 AM to 4:00 PM, and requires participants to electronically communicate projected liquidity amounts and applicable interest rate limits twice daily. It further outlines collateral requirements, same-day settlement procedures, and grants the central bank discretionary authority to intervene as a buyer or seller using its policy rate to balance transaction volumes and enhance monetary policy transmission.
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