The National Bank of Rwanda (the "Central Bank") has issued a directive establishing conditions for non-licensed persons to get authorisation to transact in foreign currencies in Rwanda.

The Directive No0520/2023-00041[613.1.4] of 22/02/2023 was issued by the Central Bank (The "Central Bank Directive") on 22 February 2023 and provides guidance on the implementation of the Central Bank Regulation on Foreign Exchange Operations, 2022. This requires non-licensed persons to obtain prior authorisation from the Central Bank before transacting in foreign currencies (the "Central Bank Regulation").

Although the Central Bank Regulation provides for the obligation for non-licensed persons to apply for authorisation to transact in foreign currencies, the latter does not set out the process to be followed and requirements to be met by such persons when applying for authorisation to transact in foreign currencies. This is a gap which has now been bridged by the Central Bank Directive.

As per the Central Bank Directive, a non-licensed person requesting authorisation must submit their written application to the Central Bank and must prove that:

  • the nature of business necessitates dominantly to transact in foreign currencies,
  • the cash inflows and outflows are made in foreign currencies; the business has a foreign currencies bank account in authorised intermediaries,
  • the business deals mainly with non-residents especially suppliers, clients, or other stakeholders; and
  • the financial reporting has connection with the foreign currency transaction, collectively the "Requirements for Authorization".

It is worth mentioning that not all non-licensed persons are required to obtain prior authorisation from the Central Bank before transacting in foreign currencies. In accordance with Article 2(2) of the Central Bank Directive, non-licensed persons receiving foreign currencies by nature of their business or activities when dealing with non-resident, are allowed to transact in foreign currencies without authorisation from the Central Bank. Such persons include hotels; restaurants; casinos, the travel and tourism industry, and international schools.

Any non-licensed persons not listed under the Central Bank Directive and who wish to transact in foreign currency must apply for an authorisation by submitting a written request accompanied by:

  • a copy of the board of directors or shareholders' resolution that authorises a non-licensed person to prepare and submit the application for authorisation to transact in foreign currency to the Central Bank;
  • a certified copy of the certificate of business incorporation;
  • a certified copy of the memorandum and articles of association;
  • a description of the business model, together with the main reasons why a business should transact in foreign currencies;
  • proof that they have fulfilled the conditions set forth in the Central Bank Directive, (i.e., the Requirements for Authorisation);
  • an agreement with any government institution to conduct business in Rwanda in foreign currencies (if any); a copy of previous authorization to transact in foreign currencies (if any); and
  • other information or documents which may be requested by the Central Bank.

Once the applicant has submitted a completed application and met the requirements, the Central Bank grants authorisation to transact in foreign currencies within one month from the date it received the application.

If the application to transact in foreign currencies by a non-licensed person is incomplete, the Central Bank will inform the applicant of the missing documents within a period of seven days from the date the application was received. Should the applicant not fulfill the requirements, the Central Bank may reject the application and communicate its decision with the reason to the applicant within a period of one month.

The authorisation to transact in foreign currencies by a non-licensed person once granted remains valid unless revoked by the Central Bank. This cannot be transferred or pledged in favor of any third party.


The authorisation to transact in foreign currencies imposes an obligation for the non-licensed person that has been authorised to transact in foreign currencies to keep their records on all transactions for a period of 10 years.

It is worth noting that although the Central Bank Directive came into force on 22 February 2023, non-licensed persons who are transacting in foreign currencies have been given a period of six months to comply with the requirements of the Central Bank Directive from the date of its entry into force.

Given the short grace period granted under the Central Bank Directive, organisations should consider initiating an overhaul of their contractual arrangements in place to align the same with the requirements of the Central Bank before the implementation of the Directive on 22 August 2023.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.