Democratic Republic of the Congo is taking one of its most aggressive steps yet to regain control over its monetary system, announcing a complete ban on cash transactions in foreign currencies starting April 2027 in a move aimed at reversing decades of deep rooted dollarisation.
The directive, issued by the country’s central bank, will prohibit individuals and businesses from making or receiving payments in US dollars or any other foreign currency in cash. Commercial banks will also be barred from importing physical foreign banknotes. Under the new framework, foreign currency transactions will only be permitted through electronic channels within the formal banking system, a shift authorities say will enhance transparency and improve oversight of financial flows.
Central bank governor André Wameso made the policy clear, stating that “from April 9, 2027, no person will be authorised to carry out cash transactions in foreign currencies.” The announcement signals a decisive break from past approaches that struggled to curb the widespread use of the dollar in everyday transactions.
Dollarisation in Congo is not a recent phenomenon. It is deeply rooted in the country’s economic history, particularly during the hyperinflation crisis of the 1990s when inflation soared to extreme levels, eroding confidence in the local currency. Since then, the US dollar has become the preferred store of value and medium of exchange, especially for high value transactions. Today, most payments above five dollars are conducted in foreign currency, reflecting persistent distrust in the Congolese franc.
The scale of the challenge is evident in the currency’s long term depreciation. The franc, which traded at around 920 to the dollar in 2010, now hovers at roughly 2,300 per dollar. This decline has reinforced reliance on the dollar, particularly in urban centres and informal markets where cash transactions dominate.
Previous policy attempts to reverse this trend have delivered limited results. A 2024 directive requiring electronic payment terminals to operate exclusively in francs failed to significantly reduce dollar usage, as cash transactions continued to bypass formal controls. By directly targeting physical dollar circulation, the new measure goes further than any prior reform, but also raises questions about feasibility.
The government’s motivation extends beyond currency stabilisation. The policy is closely linked to efforts to strengthen financial regulation and exit the Financial Action Task Force grey list, where the country remains due to weaknesses in anti money laundering and counter terrorism financing frameworks. By forcing foreign currency transactions into traceable banking channels, authorities aim to close gaps that have long enabled unmonitored financial activity.
Recent reforms have already tightened reporting requirements and expanded the powers of the country’s financial intelligence unit, CENAREF, to track suspicious transactions. The new cash ban is expected to complement these measures by reducing the opacity associated with informal cash based exchanges.
The timing of the policy reflects improving macroeconomic conditions. Economic growth in the country is projected to reach over six percent in 2026, supported largely by the mining sector and steady performance in non extractive industries. Inflation has also declined sharply, dropping to just above two percent year on year as of early 2026, providing policymakers with a window to pursue more ambitious reforms.
Despite these improvements, underlying vulnerabilities remain. The Congolese franc continues to face pressure, and a noticeable gap persists between official and parallel exchange rates, highlighting ongoing structural imbalances in the economy. These realities underscore the risks associated with enforcing a sweeping ban in a system still heavily reliant on informal transactions.
The Democratic Republic of the Congo’s move also reflects a broader pattern across Africa, where several countries, including Nigeria, Ghana, and Angola, have intermittently introduced measures to limit foreign currency use in response to volatility and capital flight. However, Congo’s approach stands out for its scale and ambition.
With a population exceeding 100 million and one of the largest informal economies in the world, enforcing the ban will be a significant test of state capacity. Success will depend not only on regulation but also on rebuilding public trust in the local currency, a challenge that goes beyond policy directives.
If the reform succeeds, it could mark a turning point in restoring monetary sovereignty and strengthening the country’s financial system. If it fails, it risks pushing more economic activity underground, undermining the very transparency and control the government seeks to achieve.
The stakes are high, and the outcome will likely shape how other African economies approach the complex balance between currency stability, financial inclusion, and economic control in an increasingly uncertain global environment.
