DRC Central Bank Bans Foreign Currency Cash Transactions Starting April 2027

Context The Democratic Republic of Congo runs a dual‑currency economy where the US dollar dominates mining royalties, cross‑border trade and daily purchases despite the official franc. Years of weak confidence in the franc, rooted in past hyperinflation, have pushed over 100 million people to rely on cash dollars. Mining firms such as Glencore (GLEN.L), Freeport‑McMoRan (FCX) and CMOC (603993.SS) extract copper and cobalt, earning nearly all revenue in dollars that often enter the country as physical notes before leaking out of the regulated sector.

Key Facts The central bank announced the ban on April 9 2027, prohibiting individuals and businesses from making or receiving cash payments in foreign currencies. Governor André Wameso said the policy is essential to returning “billions of dollars in annual cash inflows” to formal control, noting that banks currently retain only a fraction of the dollars they receive in cash. Cash remains the dominant payment method for more than 100 million Congolese, underscoring the scale of the informal sector that handles roughly 70 % of economic activity. Market data shows Glencore’s market cap near $62 B, Freeport‑McMoRan’s around $48 B and CMOC’s about $28 B. Copper trades at $4.20 per pound, up 1.8 % year‑to‑date, while cobalt sits at $30 per pound, down 4.2 % year‑to‑date. The DRC’s GDP is estimated at $62 B.

What It Means By forcing all foreign‑currency flows through electronic channels, the central bank gains greater oversight of hard‑currency movements, aiming to curb money‑laundering and reduce pressure on the franc. Mining companies will need to adapt their payment processes, likely increasing reliance on mobile money platforms and bank transfers. Success hinges on expanding digital payment infrastructure and rebuilding public trust in the franc amid volatile commodity prices and regional security concerns. Analysts warn that enforcement will test the central bank’s capacity in a nation where cash remains king for most of the population.

Investors will watch how quickly the DRC rolls out mobile money solutions and whether the franc stabilizes against the dollar through 2028.