KINSHASA — The Democratic Republic of Congo’s central bank has announced a sweeping plan to prohibit the use of U.S. dollars and other foreign currencies in all domestic cash transactions, marking one of the most ambitious attempts by an African nation to reclaim monetary sovereignty from a currency that has become deeply embedded in everyday economic life.
The measure, set to take effect from April 2027, will require all cash transactions within DR Congo to be conducted in Congolese francs. The announcement has sent ripples through the Congolese economy and drawn sharp reactions from businesses and ordinary citizens who have relied on the dollar as a store of value.
The Scale of Dollarization in DR Congo
DR Congo is one of the most dollarized economies in the world. Estimates suggest that over 80 percent of large transactions are conducted in U.S. dollars. In many parts of the country, retailers and landlords quote prices in dollars and refuse payment in francs.
Congo’s history of hyperinflation in the 1990s — when annual inflation briefly exceeded 9,000 percent — shattered confidence in the national currency. ‘People here trust the dollar more than they trust their own government,’ said Augustin Kabundi, an economist at the University of Kinshasa.
Business Concerns
The business community has responded with a mixture of cautious acceptance and deep concern. Large mining companies — which dominate DR Congo’s export economy — say the ban will require fundamental changes to how they pay local suppliers.
Small and medium enterprises say the transition will be particularly difficult for those who have built their pricing structures around dollar values. ‘I buy my goods in dollars, I sell in dollars, I pay my rent in dollars — how do I suddenly switch?’ asked Jean-Pierre Mbuyi, a Kinshasa-based electronics trader.
Currency History: Lessons from Other Countries
DR Congo is not the first country to attempt dedollarization. Ecuador dollarized in 2000, going in the opposite direction and crediting it with anchoring macro-economic stability. The key determinant of success, economists say, is whether the local currency inspires confidence — which requires low inflation, fiscal discipline, and a reliable supply of banknotes.
‘The danger is that a hard ban without adequate preparation creates a crisis of confidence,’ warned Kabundi. ‘You could see a rapid depreciation of the franc if people rush to convert, or a dollar shortage that paralyzes small businesses.’
As April 2027 approaches, the world will see whether DR Congo’s bold experiment in reclaiming monetary sovereignty succeeds — or whether it becomes another cautionary tale about the gap between ambitious policy and economic reality.