Full Breakdown
Democratic Republic of Congo Bans Cash Payments in Foreign Currencies
4/13/2026, 10:41:09 PM
Central Policy Shift on Currency Transactions
The Central Bank of the Democratic Republic of Congo (DRC) has announced a significant policy change, prohibiting individuals and businesses from making or receiving cash payments in U.S. dollars or other foreign currencies. Effective April 9, 2027, this directive also bans commercial banks from physically importing foreign banknotes. The central bank aims to enhance oversight of money flows by allowing foreign currency transactions solely through electronic banking channels. Governor Andre Wameso stated, “From April 9, 2027, no person will be authorised to carry out cash transactions in foreign currencies.”
Historical Context of Dollarisation
This policy addresses a long-standing issue of dollarisation in the DRC, where decades of instability and hyperinflation, particularly during the 1990s when inflation peaked at around 2,000%, led to a reliance on the dollar as a stable store of value. Currently, most transactions exceeding $5 are conducted in U.S. dollars, with the Congolese franc trading at approximately 2,300 per dollar, a significant depreciation from about 920 in 2010. Previous attempts to curb dollarisation, such as a 2024 directive mandating electronic payment terminals to accept only francs, have had limited success, as cash transactions in dollars continue to dominate informal markets.
Financial Oversight and Global Compliance
The new policy is also a strategic move to address international financial pressures, particularly the DRC's status on the Financial Action Task Force's grey list due to deficiencies in anti-money laundering and counter-terrorism financing measures. Recent reforms, including stricter laws enacted in 2022 and expanded in 2025, have aimed to tighten reporting requirements for banks and businesses. By channeling foreign currency transactions through traceable banking systems, authorities seek to close loopholes that complicate monitoring cash-based transactions.
Economic Conditions and Challenges
The policy comes at a time of improving macroeconomic conditions, with projected economic growth of 6.2% in 2026, driven by the mining sector and stable non-extractive activities. Inflation has significantly decreased to 2% year-on-year as of March 2026, down from over 10% a year earlier, prompting the central bank to lower its benchmark interest rate to 13.5%. However, challenges remain, including ongoing currency pressures and a widening gap between official and parallel exchange rates, indicating persistent structural imbalances.
Broader Implications and Regional Context
The DRC's decision reflects a wider trend across Africa, where countries like Nigeria, Ghana, and Angola have also tightened controls on foreign currency usage amid currency volatility. However, the DRC's situation is particularly complex due to its large population of over 100 million and one of the world's largest informal sectors, raising questions about the feasibility of enforcing a cash ban on dollars and the potential impact on public trust in government measures.
Criticism and Concerns
Critics of the policy express concerns regarding its implementation in a largely cash-based economy, suggesting that the enforcement of such a ban may be challenging and could lead to increased distrust among the populace. The effectiveness of this policy in curbing dollarisation and its impact on everyday transactions remains to be seen as the DRC navigates this significant economic shift.
Verbatim Quotes
“From April 9, 2027, no person will be authorised to carry out cash transactions in foreign currencies.” — Andre Wameso, Governor of the Central Bank of the Congo.
