The National Bank of Rwanda (BNR) has warned that the use of foreign currency within the country is strictly regulated, and that only authorised individuals and institutions are permitted to conduct transactions in foreign exchange. The warning comes amid growing public interest and questions regarding the use of foreign currencies in everyday transactions and business operations, particularly in sectors that interact frequently with international clients.
Officials from the central bank clarified the applicable rules while addressing concerns that the increasing presence of foreign currencies in the economy could undermine compliance with existing monetary regulations. They emphasised that Rwanda operates under a clear legal framework designed to safeguard the national currency and ensure macroeconomic stability.
“All foreign currencies in Rwanda are classified as foreign exchange and are subject to regulation,” said Blandine Mukaneza, Director, Non-Bank Financial Institutions Supervision at BNR. “All payments within the country, including those made by foreigners, must be conducted in Rwandan francs.”
Mukaneza explained that while visitors entering Rwanda may carry foreign currency, its use is limited and closely regulated. In circumstances where foreign currency is accepted, transactions must be calculated based on the value of the Rwandan franc, which remains the sole legal tender for domestic trade. These measures, she said, are intended to protect the integrity of the local currency and prevent the misuse of foreign exchange in the domestic market.
Rwanda’s financial system has undergone significant reforms over the past two decades, with the central bank playing a key role in strengthening monetary policy, financial supervision, and payment systems. The emphasis on the use of the Rwandan franc is part of broader efforts to promote confidence in the local currency, reduce dollarisation, and enhance the effectiveness of monetary policy.
According to Mukaneza, certain entities are authorised to receive foreign currency under clearly defined conditions. These include hotels, international schools enrolling foreign students, duty-free shops at airports and border posts, mining investors engaged in international trade, and some construction companies operating with special authorisation. Such exceptions recognise the operational realities of sectors that routinely deal with cross-border transactions and foreign clients.
“Duty-free shops sell goods exempt from government taxes and VAT,” Mukaneza said. “Purchases there are meant for travellers entering or leaving the country, and there are limits on quantities that can be bought tax-free.” She added that these controls are essential to prevent abuse of tax exemptions and to ensure that duty-free privileges serve their intended purpose.
About 13 institutions in Rwanda are currently permitted to carry out transactions in foreign currency. These institutions operate under close supervision by the central bank and are required to comply with strict reporting and compliance standards. Other individuals or businesses seeking to use foreign exchange for payments must apply for authorisation from the Rwanda Development Board before doing so.
Foreign currency remains important to the Rwandan economy, particularly for settling imports and exports, attracting foreign investment, and supporting key sectors such as tourism, mining, and international education. Rwanda’s banking sector, which includes commercial banks, microfinance institutions, and foreign exchange bureaus, plays a central role in facilitating these transactions while ensuring compliance with national regulations.
Mukaneza also noted that Rwandans are allowed to open foreign currency accounts at commercial banks, provided they meet the banks’ requirements. Such accounts are commonly used by exporters, individuals earning income abroad, and organisations receiving foreign funding. Loans denominated in foreign currency are also possible, although borrowers are strongly advised to assess the risks associated with exchange rate fluctuations, which can significantly affect repayment obligations.
Olivier Mugwaneza, the Manager Financial Sector Policy at BNR, said applications to use foreign currency are carefully reviewed before approval is granted. “Some individuals are authorised because they work with international organisations or foreign embassies,” he said. He stressed that no business or individual is permitted to refuse payment in Rwandan francs.
“The legally recognised currency for trade in Rwanda is the franc, even when goods or services were purchased using foreign currency,” Mugwaneza said. This principle, he added, is fundamental to maintaining consistency and fairness in the domestic market.
BNR also warned against unauthorised foreign exchange activities, including informal currency exchange and accepting rent or other payments in foreign currency without approval. Such practices, officials said, expose the economy to risks such as money laundering, tax evasion, and loss of confidence in the financial system.
Mukaneza said anyone exchanging foreign currency must do so through licensed bureaus or commercial banks. A first offence carries a fine of Rwf5 million, while a second offence is penalised with Rwf10 million. Those caught receiving foreign currency without authorisation are fined 50% of the amount received for a first offence and 100% for a second.
“Unauthorised use of foreign currency is punishable by law,” Mukaneza said. “The rules exist to protect the economy and ensure stability while allowing foreign exchange use where it is needed and properly regulated.”
