Exchange Rate Burundian Franc

The Burundian Franc (BIF) exchange rate has experienced fluctuations over time. From 2000 to 2010, the BIF was relatively stable against major currencies due to the central bank's active intervention. However, from 2010 onwards, the BIF started to depreciate consistently against currencies like the US dollar and euro.

Variations in the BIF Exchange Rate

The BIF exchange rate has shown significant variations over time. Factors such as political instability, economic uncertainty, and foreign investor sentiment have influenced these variations. It is important to note that the BIF is a relatively illiquid currency, which makes it more susceptible to large fluctuations during periods of economic stress.

Significance of BIF in the Global Economy

The Burundian Franc has limited significance in the global economy. Burundi is a small, landlocked country with a relatively small export market. The BIF is primarily used for domestic transactions and has limited international trade or investment flows. However, developments in the BIF exchange rate can impact the local economy, inflation, and purchasing power of Burundian citizens.

Shocks Experienced by BIF and Correlation with Other Currencies

The BIF has experienced shocks due to both internal and external factors. Internal shocks include political unrest, corruption, and economic mismanagement. External factors such as commodity price fluctuations, changes in foreign investor sentiment, and global economic trends can also impact the BIF exchange rate. The correlation between the BIF and other currencies is generally weak due to limited trade and capital flows involving the Burundian Franc.