Is Forex Legal In Rwanda?

Forex trading is legal in Rwanda and is regulated by the National Bank of Rwanda (BNR). The country has established a comprehensive regulatory framework that governs foreign exchange activities through specific regulations and licensing requirements (1). All entities interested in operating leveraged forex trading in Rwanda must obtain the necessary licenses from the BNR, and traders are urged to verify the licensing status of any trading platforms they engage with to effectively mitigate risks.

The regulatory framework is primarily governed by the Regulation of the National Bank of Rwanda governing Foreign Exchange Bureaus, which establishes licensing requirements and conditions for carrying out foreign exchange business (1). Rwanda classifies forex bureaus into two categories with different capital requirements - Category I requires a minimum paid-up capital of 50 million Rwandan francs, while Category II requires 25 million Rwandan francs (1). The regulation also mandates that forex bureaus maintain proper record-keeping systems, comply with anti-money laundering requirements, and operate only through licensed intermediaries (2).

"The regulation provides that only licensed intermediaries are authorized to carryout foreign exchange business in conformity with specific central bank regulations."

Individual retail traders in Rwanda can legally participate in forex trading, but they must work with properly licensed brokers to ensure compliance with local laws. The BNR maintains strict oversight of all forex-related activities and has implemented leverage caps of 1:50 for retail traders, with higher leverage only permitted for institutional investors. Forex bureaus are prohibited from selling foreign currency to non-residents unless proper documentation is provided, and all transactions above 20 million Rwandan francs must be conducted through licensed bank accounts. The regulatory environment aims to protect investors while maintaining the integrity of Rwanda's financial sector.

Source:
https://rwandalii.org/akn/rw/act/reg/2018/2310-15/eng@2019-01-07
https://www.bnr.rw/laws-and-regulations/regulatory-digest-market-consultation/regulatory-digest/regulation-governing-forex-operations/

Last updated: 01-06-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.