Democratic Republic of Congo takes steps to prohibit US currency transactions

The Democratic Republic of Congo's central bank announced on Thursday that it will prohibit the use of dollars and other foreign currencies for cash transactions within the country, in an effort to regain control over its monetary system.

Over the years, foreign currencies have increasingly replaced the weak local Congo franc in various transactions, including those at stores and other establishments, as the local currency has struggled to maintain its value.

Past attempts by the Congo Central Bank to ban the use of the dollar have been unsuccessful, highlighting the challenges the institution faces in enforcing its policies.

The latest ban, set to take effect on April 9, 2027, will mark a significant shift in the country's monetary policy, as announced by BCC governor Andre Wameso in a statement.

According to Wameso, from the designated date, individuals will no longer be authorized to conduct cash transactions in foreign currencies, and commercial banks will not be permitted to physically import foreign currency.

However, transactions in foreign currencies will still be allowed, but only through electronic bank transactions, as outlined by Wameso.

The central bank's measure aims to continue its efforts to combat the risks of money laundering and terrorist financing, which have been a concern for the country's financial system.

The use of the dollar in the local economy first emerged in the 1990s, when inflation soared to an annual rate of 2,000 percent, leading to a decline in trust in the local Congo franc.

Today, most transactions exceeding $5 are paid for in dollars, reflecting the limited faith in the local currency, which currently trades at approximately 2,300 to the dollar, down from 920 to the dollar in 2010.

Since then, the authorities have made several attempts to curb the spread of the US currency, including an order in 2024 for banks and financial institutions to configure electronic payment terminals to accept only the Congolese franc.

The DR Congo, with a population of over 100 million people, is one of the world's poorest countries, despite its vast mineral wealth, which has drawn interest from countries such as China and the United States.