The central bank of the Democratic Republic of Congo has announced plans to ban all cash transactions in foreign currencies from April 2027 in a bold move aimed at reducing reliance on the US dollar and strengthening the local currency.

The Central Bank of the Congo said the measure will prohibit individuals and businesses from making or receiving payments in cash dollars or any other foreign currency. Commercial banks will also no longer be allowed to physically import foreign banknotes.

Under the new framework, foreign currency transactions will only be permitted through electronic banking systems.

Governor Andre Wameso said: “From April 9, 2027, no person will be authorised to carry out cash transactions in foreign currencies.”

The policy is aimed at addressing the widespread use of the US dollar in the Congolese economy, which has persisted for decades following periods of economic instability and hyperinflation.

Authorities say the dominance of the dollar has weakened confidence in the Congolese franc and limited the central bank’s control over monetary policy.

The franc continues to trade far below its long-term value, reflecting sustained pressure on the local currency despite recent economic reforms.

The new ban also forms part of broader efforts to strengthen financial oversight and support the country’s push to exit the Financial Action Task Force grey list over concerns related to anti-money laundering and financial transparency.

Officials believe shifting foreign currency transactions into regulated digital channels will improve traceability and reduce risks associated with cash-based financial flows.

However, analysts caution that enforcement could be challenging given the country’s large informal economy and deep-rooted reliance on cash transactions.

The DRC economy has seen recent signs of stabilisation, with inflation easing significantly and growth supported largely by the mining sector, including key exports such as cobalt.

Despite this, currency pressures and gaps between official and parallel exchange rates continue to highlight structural weaknesses in the financial system.

The move places the DRC among several African countries seeking to tighten control over foreign currency usage as part of broader monetary reforms.