The government of the Democratic Republic of the Congo has launched one of its most ambitious monetary reforms in decades, announcing that physical foreign currency cash transactions will be phased out by April 2027 as authorities seek to restore confidence in the Congolese franc, strengthen financial oversight and reduce the country’s long-standing dependence on the U.S. dollar.
The policy, introduced by the Central Bank of the Congo, marks a significant shift in the country’s economic direction. Under the new framework, commercial banks will no longer be permitted to import physical foreign banknotes, while foreign exchange transactions will progressively be conducted through electronic banking channels instead of cash.
Regarding the views of government officials, the reform is about more than changing how people pay. It is an effort to rebuild monetary sovereignty after decades during which the U.S. dollar became the preferred currency for businesses, households and traders following the country’s severe hyperinflation of the 1990s.
Economists say the widespread use of foreign currencies has limited the government’s ability to effectively implement monetary policy, control inflation and protect the value of the national currency. By encouraging greater use of the Congolese franc, authorities hope to improve financial stability, deepen the formal banking system and strengthen the country’s capacity to manage its economy.
The reform is also expected to support the government’s broader campaign against money laundering, illicit financial flows and terrorism financing. Restricting physical foreign currency circulation could make it easier for regulators to monitor transactions, improve transparency and help the country meet international financial compliance standards as it seeks to exit the Financial Action Task Force (FATF) grey list.
Away from financial regulation, government officials believe the policy could encourage greater digital payment adoption, expand banking services to more citizens and increase tax compliance by reducing unrecorded cash transactions that dominate much of the informal economy.
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