Keypoints:
- Rwanda outlaws unauthorised dollar use
- Offenders face fines up to Rwf 10m
- Move aims to strengthen the franc
RWANDA has enacted strict new measures prohibiting the unauthorised use of foreign currencies—including the US dollar—in domestic transactions, as it seeks to protect the value of the Rwandan franc and reduce reliance on hard currency.
Under the new policy, the National Bank of Rwanda (NBR) will impose fines of Rwf 5 million ($4,000) for a first offence and Rwf10 million for repeat violations on businesses and individuals who use foreign currencies in local trade without permission.
The regulation, which came into effect in June, targets what officials describe as ‘informal dollarisation’—the widespread, unregulated use of foreign currencies for everyday business, which the central bank says undermines monetary policy and creates unfair pricing distortions.
What’s banned under the new rules
The NBR now bans quoting prices in US dollars or other foreign currencies in local transactions, whether online or in person. The policy prohibits:
- Displaying prices in foreign currency on websites targeting Rwandan customers
- Issuing invoices to locals in foreign currencies
- Accepting foreign currency payments from residents
- Referring to dollar values during local sales negotiations
All domestic transactions must now be carried out in Rwandan francs unless a special exemption is granted.
Governor Soraya M. Hakuziyaremye, who announced the directive, said the measure will ensure stronger economic sovereignty and more effective control of inflation and interest rates.
‘Unauthorised use of foreign currencies weakens our monetary tools and distorts market competitiveness,’ said an NBR spokesperson. ‘These reforms will bring greater transparency and consistency in local pricing.’
Who is exempt—and who isn’t
The regulation does make allowances for specific types of transactions. Imports, exports, and operations by licensed forex dealers are exempt, as are certain businesses catering to non-residents—such as hotels, tourism agencies, duty-free shops, international schools, and casinos—provided they transact with foreigners.
However, any local-facing business that uses foreign currencies without explicit NBR approval now risks steep fines and possible blacklisting.
The NBR says these changes are part of a broader campaign to entrench use of the franc, reduce inflationary pressure from imported goods, and boost investor confidence in Rwanda’s monetary stability.
A growing continental trend
Rwanda’s clampdown is part of a wider trend across Africa as countries work to reassert the primacy of their national currencies.
Tanzania introduced a similar measure in May, banning the use of foreign currencies for goods and services within its borders. The Bank of Tanzania reaffirmed that all local trade must be done in Tanzanian shillings.
In Nigeria, the Senate has proposed a bill mandating that all business and salary payments be made in naira. The country’s Economic and Financial Crimes Commission (EFCC) has also barred foreign embassies from transacting in foreign currencies.
These moves reflect mounting concern that foreign currency usage is weakening local monetary systems and stifling financial sovereignty.
Rwanda strengthens its monetary backbone
By curbing the informal use of the dollar and reinforcing the franc, Rwanda is taking a bold step to safeguard its monetary framework and protect consumers from currency-driven price volatility.
As the country positions itself as a financial and trade hub in East Africa, its currency reform signals a determination to assert control over its economic destiny.
