The National Bank of Rwanda (NBR) has issued a new directive governing persons authorised to transact in foreign currencies and the requirements for obtaining authorisation. This New FX Directive clarifies who can transact in foreign currencies and under what conditions. The New FX Directive builds on prior regulatory frameworks to strengthen enforcement and reduce unauthorised foreign currency transactions in the country. The new directive is the result of a multi-year review process conducted by NBR. According to a related radio talk show, on June 10, this review began in 2021 and aimed to assess market practices and risks associated with foreign currency use. ALSO READ: Central bank explains new changes in foreign currency use This process led to the issuance of the 2022 regulation governing foreign exchange operations (the “FX Regulation”), and the corresponding 2023 directive on transacting in foreign currencies by non-licensed persons (the “Repealed FX Directive”), which granted limited exceptions for businesses inherently dealing in foreign currencies. These are businesses such as hotels, casinos, the travel and tourism sector, and international schools. Despite this FX Regulation and the repealed FX Directive, surveys conducted between 2023 and 2024 revealed widespread unauthorised use of foreign currencies in local transactions contributing to unnecessary dollarisation. In response, NBR issued a 2025 regulation amending the FX Regulation (the “Amended FX Regulation”) to reinforce sanctions against unnecessary dollarisation, while leaving the repealed FX Directive unchanged. The new directive, issued on September 17, 2025, provides the definitive legal framework for foreign currency transactions by non-licensed persons. The new directive replaces the repealed FX Directive and provides a comprehensive list of entities automatically authorised to transact in foreign currencies, without seeking approvals for each transaction. Authorisation applies only when these entities transact within the normal course of their business activities. The categories include real estate companies with valid investment registration certificates from Rwanda Development Board (RDB); tourism operators and travel agencies holding RDB-issued tourism operating licenses; and entities operating under the Kigali International Financial Centre regime. Equally, the Kigali International Arbitration Centre, mining operators involved in mineral trading, and aviation and related logistics service providers, including air ticketing agencies and cross-border land and water logistics companies, are explicitly covered. Also, the New FX Directive extends automatic authorisation to duty-free shops and casinos, international schools and universities, and suppliers or service providers to diplomatic missions, UN missions, and other international organisations accredited in Rwanda. Expatriates legally employed in Rwanda, as well as service providers to expatriates and individuals who earn income in foreign currencies from outside Rwanda, are also included. A contradiction previously existed between the FX Regulation and the Amended FX Regulation. The FX Regulation permitted foreign currency salary payments to expatriates and Rwandans working temporarily abroad. However, the Amended FX Regulation prohibited residents (defined as individuals residing in Rwanda, including expatriates) from stating prices in foreign currency in contracts. This contradiction has now been resolved by the new directive which allows expatriates authorised to work in Rwanda, or individuals providing services to entities that source foreign currency from outside Rwanda, to receive payments in foreign currency. However, authorised dealers cannot refuse payment in Rwandan Francs or compel anyone to pay in foreign currency, unless explicitly agreed by both parties. Payment in foreign currency for goods or services exported or imported is still freely permitted, without requiring specific authorisation from the central bank (Article 20 bis of Amended FX Regulation). Individuals or entities not falling under the automatically authorised categories but whose business genuinely requires foreign currency transactions must apply for authorisation from the central bank. The application should include a letter demonstrating that the nature of the business necessitates foreign currency transactions, that actual or expected cash inflows and outflows occur in foreign currency, and that the entity maintains foreign currency accounts with licensed intermediaries. This letter must be accompanied by a certified copy of registration and incorporation documents, a current tax-clearance certificate, copies of any agreements denominated in foreign currency, financial statements for the previous two years reflecting foreign currency transactions, and a recommendation letter from RDB. Some of these requirements may not apply depending on the entity’s nature and length of operation. NBR commits to assessing applications and taking a decision to grant or deny authorisation within a maximum period of 25 working days, with a possible 10 working days’ extension. Entities with existing foreign currency contracts not listed as automatically authorised dealers have six months transition period from the publication of the new directive to comply. All businesses and individuals currently transacting in foreign currencies are urged to review the New FX Directive to ascertain if their operations align with the defined categories of authorised dealers and initiate the authorisation process if not listed as an authorised dealer, while being mindful of the strict penalties for non-compliance. Rwanda Inspectorate, Competition and Consumer Protection Authority (RICA), Rwanda National Police, and local government authorities, have been designated as the enforcement authorities in collaboration with NBR. The author is a corporate and legal services lead at Andersen, a tax, legal, and business advisory firm in Rwanda.
