After Tanzania, Another African Country Bans Use of Dollar from April 2027
- The Central Bank of the Congo will ban cash transactions in foreign currencies from 2027
- The new rule now only allows foreign currency payments in electronic transactions
- The policy targets dollarisation, as the US dollar dominates transactions in the country
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The Central Bank of the Congo has announced plans to ban the use of the US dollar and other foreign currencies for cash transactions.
In a statement on Thursday, April 9, the Congolese central bank said the new directive would take effect from April 9, 2027.
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Congo bans the use of dollar for cash transactions
The move is part of the government of Congo's fresh attempt to strengthen its local currency.
The move follows a similar policy recently introduced by the Bank of Tanzania, which outlawed the use of foreign currencies for domestic payments.
In the statement, Governor Andre Wameso said:
" Foreign currencies have gradually overtaken the use of the weak local Congo franc in recent years in stores and other places. The Congo Central Bank has tried and failed in the past to ban the use of the dollar."
He added that transactions in foreign currencies would only be permitted electronically through the banking system.
The central bank said the policy is aimed at strengthening financial oversight and continuing the fight against the risk of money laundering and terrorist financing.
Dollar dominance in Congo economy
Foreign currencies, particularly the US dollar, have increasingly dominated transactions in the Democratic Republic of the Congo over the years, largely due to low confidence in the local currency, the Congolese franc.
The dollar gained prominence in the 1990s during a period of hyperinflation that saw inflation surge to about 2,000%.
Today, most transactions above $5 are conducted in dollars, while the local currency trades at about 2,300 francs to the dollar, compared to around 920 francs in 2010, Vanguard reports.
Authorities have made several attempts to curb dollarisation, including a 2024 directive requiring banks and financial institutions to configure payment terminals to accept only the Congolese franc.
Despite these efforts, public trust in the local currency has remained weak.
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Tanzania takes a similar step
The development comes after Tanzania implemented its own ban on foreign currencies for local transactions.
The Bank of Tanzania said all goods and services in the country must now be priced and paid for strictly in Tanzanian shillings.
Under the regulation, it is an offence to quote or accept payments in foreign currencies or refuse payments made in the local currency.
Foreigners, including tourists, are required to exchange their money through commercial banks or licensed bureau de change operators, although digital payments using bank cards are still allowed.
The statement read:
“Under these Regulations, pricing and payment for all goods and services within the country must be in Tanzanian Shillings. Therefore, it is an offence to quote, advertise, or indicate prices in foreign currency, to compel, facilitate, or accept payment in foreign currency, or to refuse payment made in Tanzanian Shillings.”
Naira records fresh decline against US dollar
Earlier, Legit.ng reported that the naira recorded a fresh decline against the US dollar in the Nigerian Foreign Exchange Market on Tuesday, April 7, depreciating by N5.87, or 0.43%, to trade at N1,386.66/$1, compared with N1,380.79/$1 in the previous session.
In the same market window, the naira also weakened against other major currencies.
Source: Legit.ng
