Congo Central Bank to ban foreign currency cash transactions from April 2027.

De-dollarization drive targets cash and crime

PAUL CHINEDU

The Democratic Republic of Congo’s central bank has announced a sweeping restriction on cash dealings in US dollars and other foreign currencies, effective April 9, 2027, in a determined bid to curb money laundering and restore faith in the volatile local franc.

Governor André Wameso described the policy as essential to bringing billions of dollars in annual cash inflows back under formal control, telling reporters on the sidelines of the International Monetary Fund-World Bank spring meetings that commercial banks currently receive vast sums in physical dollars yet retain only a fraction on their balance sheets.

Under the new rules, no individual or business will be permitted to conduct cash payments or receipts in foreign currencies, and commercial banks will lose the right to import physical foreign banknotes.

All such transactions must instead flow through electronic banking channels, effectively handing the central bank greater oversight of hard-currency movements in one of Africa’s largest and most resource-rich economies.

A heavily dollarized economy fights back

The Democratic Republic of Congo has long operated as a dual-currency nation, with the US dollar dominating everyday commerce, mining royalties, and cross-border trade despite the official use of the Congolese franc.

Successive governments have struggled with weak public confidence in the local unit, a legacy of past hyperinflation and political instability that pushed citizens and businesses toward the greenback for stability.

Mining giants extracting copper, cobalt and other critical minerals earn nearly all their revenue in dollars, much of which enters the country in cash form before leaking out of the formal financial system.

Authorities hope the ban will channel these flows into regulated banks, reduce illicit finance risks and eventually lift the country off the financial action task force grey list.

Previous attempts to limit dollar use have faltered, and analysts caution that enforcement will test the central bank’s capacity in a nation where cash remains king for more than 100 million people, many of whom operate in the vast informal sector.

Success will hinge on expanding digital payment infrastructure and winning public trust in the franc at a time when global commodity prices and regional security concerns continue to shape investor sentiment toward Congo’s resource-driven economy.

The policy marks one of the most ambitious de-dollarization drives in sub-Saharan Africa and will be closely watched by international investors, mining companies and neighboring countries grappling with similar currency pressures.

Finance in Africa