New rule: Who can get paid in foreign currency in Rwanda?

Rwanda Clarifies Rules on Foreign Currency Transactions

The National Bank of Rwanda (BNR) has issued a new directive outlining which individuals and entities are authorized to receive payments in foreign currencies within the country, including the U.S. dollar. This directive, issued on September 17th, clarifies the regulations surrounding foreign currency transactions and the process for obtaining authorization.

This 2025 directive, governing persons authorized to transact in foreign currencies and the requirements for obtaining authorization, identifies specific categories of individuals and legal entities that can receive payments in foreign currencies for goods and services rendered in Rwanda without needing prior approval from the central bank. This exemption is granted based on the nature of their operations. The directive also details the procedures and requirements for other entities seeking such authorization.

Defining Authorized Dealers

The directive defines an "authorized dealer" as any person or entity permitted to conduct transactions in foreign currency due to the nature of their business or activity. A "transaction in foreign currency" is defined as receiving payment in a currency other than the Rwandan Franc.

Automatically Authorized Entities

The following persons and entities are automatically authorized to receive payments in foreign currencies, provided they adhere to the terms of the directive:

• Real estate companies: Must possess valid investment certificates and approval from the Rwanda Development Board (RDB) to transact in foreign currency.
• Tourism entities and travel agencies: Must hold valid tourism operating licenses from RDB.
• Entities under the KIFC regime: Entities licensed by a competent authority and operating under the Kigali International Financial Centre (KIFC) regime, as recommended by Rwanda Finance Limited.
• Kigali International Arbitration Centre
• Mining operators: Those involved in mineral trading.
• Aviation and logistics providers: Aviation and related logistics service providers.
• Air ticketing agencies
• Cross-border transport providers: Land and water transport and logistics service providers operating across borders.
• Duty-free shops
• Casinos
• International educational institutions: International schools, universities, and higher learning institutions.
• Suppliers to diplomatic missions: Suppliers or service providers to diplomatic missions, consulates, United Nations (UN) agencies, and international organizations accredited in Rwanda.
• Expatriates and their service providers: Expatriates authorized to work in Rwanda, or any person employed by or providing services to an entity that uses foreign currency sourced from outside Rwanda, as well as suppliers or service providers to these expatriates and individuals receiving income in foreign currency from external sources.
• Entities specifically authorized by the Central Bank: Any other person specifically authorized by the National Bank of Rwanda.

Rationale Behind the Directive

The Governor of the National Bank of Rwanda, Soraya Hakuziyaremye, explained that this directive follows a revision of foreign currency usage regulations in May 2025. The directive was issued after extensive consultations with policymakers and the private sector.

The revision was prompted by numerous complaints, particularly regarding landlords demanding rent payments in foreign currencies, despite the Rwandan Franc being the sole legal tender. Inspections revealed that over 700 contracts were illegally concluded in foreign currencies.

Hakuziyaremye emphasized that the central bank consulted with various stakeholders, including the Ministry of Trade and Industry, RDB, the Ministry of Finance and Economic Planning, Rwanda Mines, Petroleum and Gas Board, and Rwanda Finance Ltd., before issuing the directive. The aim is to provide clarity on which individuals and businesses are permitted to transact in foreign currency based on the nature of their operations.

She highlighted sectors such as tourism, mining, and international education as examples of those naturally suited to foreign currency transactions. Minerals, for instance, are typically priced internationally in foreign currencies. Similarly, international schools and universities, which attract a growing number of international students, often deal with foreign currency transactions.

The core principle underpinning the directive is that no Rwandan citizen or resident should be forced to pay or be denied the option to pay in local currency. The central bank believes that the revised regulation and directive will address the malpractices observed in the market.

Hakuziyaremye also stressed that the directive respects Rwanda's liberalized financial environment and reassures foreign investors that account liberalization remains intact. The directive will be accompanied by an extensive awareness campaign and engagement with the private sector to monitor its implementation and make adjustments as needed.

Application Process for Non-Automatically Authorized Entities

Individuals or businesses not included in the list of automatically authorized entities must apply for authorization through the central bank's non-bank financial institutions department.

The application must include the following:

• A letter explaining the necessity of transacting in foreign currencies due to the nature of the business.
• Evidence of actual or expected foreign currency inflows and outflows.
• Proof of foreign currency accounts with licensed intermediaries.
• A certified copy of registration and incorporation documents (if applicable).
• A valid tax clearance certificate.
• Copies of any agreements denominated in foreign currency (if applicable).
• Financial statements for the previous two years, reflecting foreign currency transactions (if applicable).
• A recommendation letter from RDB (where applicable).
• Any additional documents requested by the central bank.

Review and Authorization Timeline

The central bank will issue an acknowledgement notice within five working days, indicating whether the application is complete or specifying any deficiencies. The application will be assessed for completeness, authenticity, and compliance.

The central bank must issue a decision to grant or deny authorization within 20 working days of receiving a complete application, notifying the applicant in writing. If denied, the reasons will be provided in writing. If the decision is delayed, the central bank must provide a written explanation and may extend the review period by up to 10 additional working days. If no decision is made within the extended period, the application is automatically deemed approved.