Rwanda stresses ban on transactions in foreign currency

Rwanda's central bank has warned against pricing of goods and services in foreign currencies amid local reports of a weakening local currency against the US dollar.

In a notice on Saturday, the central bank governor said all transactions in the country should be settled in Rwandan francs as provided for by the law or agreed upon by parties.

The notice comes amid a depreciation of the local currency by over 8% that has resulted in loss of value.

"Any person selling or pricing goods or services in foreign currency without authorization shall be punishable by the seizure and confiscation of the amount involved in that transaction," the bank's governor John Rwangombwa said, citing provisions of the law.

Rwanda's economic growth softened this year to 6.2% after registering a growth of 8.2% in 2022, the finance minister and central bank governor said last month.

The growth is expected to rise to about 7.5% in 2024 and 2025.

There have been concerns of scarcity of the US dollar in the country, as well as the depreciation of the local currency, the local New Times website reports.

The East African country was among the fastest growing economies on the continent before the onset of the COVID-19 pandemic as measured by its gross domestic product.