The National Bank of Rwanda (NBR) has slapped penalties on the use of foreign currencies – including the Kenyan shilling (KSh) and US dollar (USD) – in local transactions. This follows the publication of Regulation No. 89/2025 in the Official Gazette on May 30, 2025.
The regulation aims to reinforce the Rwandan franc (RWF) as the only currency for all domestic transactions as the local currency continues to depreciate against regional and global currencies.
According to a public notice by NBR Governor Soraya M. Hakuziyaremye on June 16, the measures apply to any individual or entity that prices, transacts or auctions in foreign currency without prior authorisation. The regulation expands the definition of pricing in foreign currency to include written, digital and even verbal references to foreign denominations in dealings with Rwandan consumers.
“The Rwandan franc is the only legal tender for domestic transactions, and any breach of this regulation will be punished severely,” Governor Hakuziyaremye said.
First-time offenders who price goods or services in foreign currency without authorisation will be fined RWF 5 million, while repeat offenders will be fined RWF 10 million. Those who transact in foreign currency without authorisation will be fined 50% of the transaction value for the first time and 100% for subsequent breaches. Unauthorised foreign currency auctions will attract 50% of the auctioned amount.
The regulation allows for some exemptions for businesses engaged in cross-border trade or serving non-residents, including hotels, casinos, duty-free shops, tourism agencies and international schools – only when dealing with foreign visitors.
The enforcement is being supported by the Rwanda Investigation Bureau (RIB) and Rwanda National Police (RNP). The NBR is following suit with Tanzania, which recently cracked down on foreign currency use and saw the Tanzanian shilling recover from its prolonged depreciation this year.
The NBR hopes these measures will stabilise the franc by curbing unauthorised foreign exchange practices that cause currency volatility. Businesses are advised to review their pricing and invoicing systems to be fully compliant with the new law.
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Rwanda Enacts Heavy Penalties for Unlicensed Use of Kenyan Shilling and Other Foreign Currencies