The National Bank of Rwanda has brought into force Regulation No. 89/2025, which prohibits businesses and individuals from pricing, advertising, or invoicing goods and services in foreign currency without explicit authorisation from the central bank. The regulation was published in the Official Gazette on 30 May 2025 and took effect on 2 June 2025, introducing some of the most specific monetary-conduct rules Rwanda has imposed on commercial transactions.
Under the new framework, a first offence involving the unauthorised use of foreign currency in pricing or invoicing carries a fine of RWF 5 million. Repeat violations by the same entity attract a doubled penalty of RWF 10 million, reflecting the BNR's intent to establish a credible deterrent rather than a one-time administrative slap. Entities found to have conducted foreign-exchange transactions without approval face a fine equivalent to 50% of the transaction value on a first offence, rising to 100% for repeat breaches.
PENALTIES EXTEND TO LICENSED INTERMEDIARIES
The regulation also reaches into the conduct of licensed financial intermediaries, including commercial banks and foreign exchange bureaux. Where such entities are found to have knowingly transacted with Rwandan residents in foreign currency outside the permitted framework, they face the same penalty scale as unlicensed actors. The BNR said in the gazette notice that this provision is designed to prevent the licensed sector from facilitating regulatory arbitrage at the retail level.
Businesses that organise or participate in foreign exchange auctions without prior BNR approval face a separate penalty set at 50% of the auctioned amount. Any fines not settled within 15 days of imposition will begin to accrue a 1% daily surcharge, a provision the regulator has described as necessary to ensure timely compliance rather than allowing prolonged non-payment.
The scope of covered activities is broad. The regulation applies to pricing displayed in shops, invoices issued to customers, advertising materials, and any contractual instrument denominating a transaction in a foreign currency. Authorised exceptions will be administered through a BNR licensing process, though the central bank has not yet published detailed guidance on what categories of activity will qualify.
MONETARY SOVEREIGNTY AND REGIONAL CONTEXT
Rwanda's move reflects a broader concern among sub-Saharan African monetary authorities about the dollarisation or foreign-currency substitution of domestic transactions, a phenomenon that can erode the effectiveness of local monetary policy and weaken demand for the national currency. Several regional central banks have introduced or tightened similar restrictions over the past two years as currency pressures have intensified across the continent.
The Rwandan franc has faced periodic depreciation pressures linked to import-heavy trade balances and external financing conditions, making it particularly important for the BNR to reinforce the franc's role as the primary medium of exchange in day-to-day domestic commerce. Regulation 89/2025 directly addresses the use of foreign currencies such as the US dollar and euro in retail and commercial settings that would ordinarily be conducted entirely in local currency.
Business groups and foreign-invested enterprises operating in Rwanda are expected to review their billing and pricing systems in light of the regulation, as non-compliance now carries material financial penalties. The BNR has not announced a grace period beyond the immediate effective date of 2 June 2025.