• Central bank aims to limit cash dollar transactions and promote digital payments

• Policy targets informal dollar flows and seeks removal from FATF “gray list”

• Implementation faces challenges in an economy still heavily dollarized

In the Democratic Republic of Congo, where the U.S. dollar dominates daily transactions, central bank governor André Wameso has outlined a plan to restrict the use of cash dollars starting in April 2027.

The measure, presented during the IMF and World Bank spring meetings in Washington, is part of a broader effort to regain control over money circulating outside the formal financial system, Congolese authorities said.

“The dollars we import do not stay in the formal economy,” Wameso said, noting that billions in cash pass through commercial banks each year without being held there. A significant share of this currency, he added, flows into neighboring countries, making it difficult to track.

A Plan to exit the FATF “gray list”

The policy is part of a broader strategy to align with international standards and remove the country from the Financial Action Task Force (FATF) gray list. Remaining on the list of jurisdictions under increased monitoring affects the country’s financial credibility and access to global banking networks.

Dollar-denominated bank accounts will remain allowed, but payments are expected to shift gradually toward electronic channels. Authorities plan a one-year transition period, along with a possible amnesty to encourage individuals and businesses to deposit cash holdings into the banking system.

With this move, the DRC joins countries such as Tanzania and Zambia, which have recently tightened rules on the use of foreign currencies in domestic transactions.

The challenge of informality

The reform faces major hurdles in a country still shaped by the legacy of hyperinflation in the 1990s. According to the IMF, about 90% of deposits and 97% of loans are still denominated in dollars.

“The proposed measures represent a significant step, but implementation risks remain high given the size of the informal economy,” said Alexander Venter, an economist at Oxford Economics, in comments reported by Bloomberg.

Authorities are nonetheless relying on recent positive trends. The Congolese franc gained nearly 30% against the dollar in 2025. To support this momentum, the central bank has introduced new measures, including six-month bonds and partnerships with Visa and MasterCard to modernize payment systems.

Cautious optimism from markets

Despite ongoing conflict in the eastern part of the country involving M23 rebels, financial markets have shown cautious optimism. The DRC recently issued its first eurobond, raising $1.25 billion.

“If markets are buying 10-year Congolese bonds, it means they are betting on peace,” Wameso said. At the same time, the central bank is building up gold reserves sourced from local “conflict-free” production to strengthen its financial position.

Fiacre E. Kakpo