DR Congo to ban use of foreign currencies for local cash transactions

The Central Bank of the Democratic Republic of the Congo has announced a sweeping ban on cash transactions in foreign currencies, including the US dollar, in a major policy shift aimed at strengthening the national economy and reducing reliance on foreign cash.

According to a statement by the bank, the directive will take effect on April 9, 2027, marking one of the most significant monetary reforms in recent years.

“From April 9, 2027, no person will be authorized to carry out cash transactions in foreign currencies,” said Central Bank Governor André Wameso, adding that banks will no longer be “permitted to physically import foreign currency.”

However, the central bank clarified that electronic banking platforms will still allow the use of foreign currencies in transactions.

Move to strengthen the Congolese franc

The Central Bank said the reform is intended to reduce money laundering risks and curb the financing of terrorism, while also reinforcing the role of the local currency.

In recent years, the US dollar has become widely used across the country, often replacing the weaker Congolese franc in everyday transactions. Payments above five dollars are commonly conducted in dollars, further entrenching dollarization in the economy.

The franc currently trades at about 2,300 per US dollar, compared to around 920 in 2010, reflecting long-term inflationary pressure and economic instability.

Long-standing challenge of dollarization

Despite repeated policy efforts, authorities have struggled to reduce dependence on foreign currency. A 2024 directive requiring payment terminals to process transactions only in francs had limited impact.

Economists say deep dollarization has been driven by public distrust in the local currency and persistent macroeconomic volatility.

Officials hope the latest reforms will help restore confidence in the franc and improve monetary control, though analysts caution that success will depend on broader structural reforms and economic stability.