The International Monetary Fund has urged Burundi to accelerate long-delayed foreign exchange reforms, warning that the official value of the Burundi franc remains significantly overvalued despite recent improvements in the country’s currency market.
In its latest assessment of Burundi’s economy, the IMF said advancing foreign-exchange reforms is “critical for macroeconomic stability” and encouraged authorities to adopt a roadmap toward a more unified and flexible exchange-rate regime.
The recommendation addresses one of the country’s most persistent economic challenges: a widening gap between the official exchange rate and the parallel market rate that has contributed to chronic foreign-currency shortages.
IMF staff noted last month that the premium between the official and parallel market exchange rates remained around 100% at the end of April, even after easing from earlier levels due to stronger export earnings from coffee and gold.
“The official exchange rate appears significantly overvalued,” the IMF said.
For years, businesses have complained about difficulties accessing foreign currency needed to pay for imports, while exporters have argued that the exchange-rate system discourages investment and weakens competitiveness.
The IMF believes the current environment presents an opportunity for reform.
Higher international prices for Burundi’s two main exports coffee and gold have boosted foreign exchange inflows and reduced pressure on the market. Export revenues increased significantly in 2025, helping narrow the country’s external imbalances and improve reserve accumulation.
According to IMF projections, Burundi’s international reserves could rise from $213.9 million in 2025 to more than $500 million by 2031. Even then, reserve coverage would reach only about 2.8 months of imports, below levels typically viewed as comfortable for developing economies.
The Fund said phasing out the dual exchange-rate system would reduce economic distortions, improve competitiveness, strengthen investor confidence and increase the value of external financial support.
“Exchange rate reform would bring macroeconomic and structural benefits, ease fuel shortages, boost exports and foreign direct investment,” IMF staff said following consultations with authorities in May.
However, IMF directors emphasized that reforms should be carefully sequenced and accompanied by strong fiscal and monetary policies to limit social and economic disruptions.
The recommendation places exchange-rate policy at the center of Burundi’s stabilization program as authorities seek to rebuild confidence in the economy while sustaining recent gains against inflation.
