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The Government of Rwanda, through the National Bank of Rwanda (BNR), has officially banned the use of foreign currencies in all domestic transactions unless authorized. The move, which took effect on June 2, 2025, is part of broader reforms to protect the Rwandan franc (RWF) and promote economic sovereignty amid rising concerns over “dollarization” in local commerce.
Under Regulation No. 89/2025, an amendment to Regulation No. 42/2022, Rwandan businesses and service providers are now prohibited from quoting, advertising, invoicing, or accepting payments in foreign currencies such as the U.S. dollar, euro, or other international tender without explicit permission from the Central Bank. The regulation applies to virtually all sectors, including retail, hospitality, tourism, real estate, and transportation.
According to BNR, the regulation covers all forms of communication: printed materials, digital advertisements, verbal quotes, contracts, price lists, menus, and social media promotions. Any business or individual caught violating this law faces strict penalties. The first offense for unauthorized foreign currency pricing carries a fine of Rwf 5 million (approximately $3,500), with repeat offenders paying up to Rwf 10 million (~$7,000).
For actual foreign-currency transactions accepting or making payments the consequences are even more severe: violators will be fined 50% of the transaction value for the first offense and 100% for subsequent ones. Businesses that fail to pay fines within 15 days will incur a 1% daily penalty, and persistent violators may be reported to the Credit Bureau, potentially affecting their access to credit and financial services.
The Central Bank says the regulation is designed to restore public trust in the Rwandan franc, stabilize exchange rate volatility, and strengthen macroeconomic discipline. In a recent address, BNR Governor Dr. John Rwangombwa emphasized that allowing uncontrolled use of foreign currencies undermines the national currency and leads to inflationary pressure, especially in sectors catering to foreigners.
While the regulation imposes strict controls, exemptions are available. Foreign exchange bureaus, banks, importers, exporters, and international travel-related transactions may still operate using foreign currency but only with prior written approval from the Central Bank. The rule does not apply to international trade or cross-border e-commerce, which still permits the use of major foreign currencies for legal purposes.
Notably, the regulation also introduces whistleblower protections to encourage public reporting of illegal currency practices. Citizens who report non-compliant businesses are guaranteed confidentiality and legal immunity under the new framework.
This crackdown follows years of concern over businesses especially in Kigali, Rubavu, and tourism hubs like Musanze displaying prices exclusively in USD or euros, effectively alienating locals and encouraging black-market currency exchange. Analysts say this trend contributed to informal forex markets, capital flight, and pressure on Rwanda’s foreign reserves.
The policy aligns Rwanda with a growing number of African nations that are actively de-dollarizing their economies, including Zimbabwe, Ethiopia, and Nigeria. It also supports ongoing efforts within the East African Community (EAC) to promote regional financial integration and reduce reliance on foreign currencies for local transactions.
Businesses across Rwanda are now racing to comply with the new regulation. Many hotels, restaurants, and tour operators have already begun updating websites, menus, and contracts to reflect prices in Rwandan francs. BNR has urged all institutions to review their pricing structures immediately and submit requests for exemptions where necessary.
In summary, Rwanda’s bold decision to ban unauthorized use of foreign currency in domestic trade is a significant policy shift aimed at reinforcing the national currency, ensuring fair market practices, and safeguarding economic stability. With heavy penalties and strong enforcement mechanisms, the Central Bank has made it clear: the Rwandan franc is the only legal tender for business within Rwanda’s borders.