In an economic situation note dated April 28 to May 5, 2023, the Agence Congolaise de Presse (ACP) indicates that the exchange rate of the Democratic Republic of Congo (DRC) remained stable on the parallel market, established at 2.345 CDF for one US dollar. This stability which prevailed between March 3 and May 5 contrasts with the upward trend over the previous months, the exchange rate having depreciated by 1.1% on average weekly between January 6 and February 28, settling at 2,350 CDF for one US dollar.
In the major cities of the provinces, the average exchange rate stood at CDF 2,298.83 per US dollar, i.e. a weekly depreciation of 0.35%. The execution of the foreign currency budget, as of April 28, 2023, resulted in a surplus of US$18.28 million, resulting from income of US$147.98 million and expenditure of US$129.69 million.
In terms of reserves, they stood at 4.2 billion US dollars as of May 04, 2023, representing an import cover of 2.2 months. The world prices of the main commodities of interest to the Congolese economy have evolved differently, underlines the ACP.
This information, while relevant, remains incomplete without deeper context and analysis. Moreover, several blog articles published on fatshimetrie.org address various topics that have a direct impact on the Congolese economy and that could explain the causes and consequences of this exchange rate stability. For example, the article entitled “DRC: distribution of 753 billion CDF between the provinces, what impact on development?” underlines that the distribution of funds intended for the different provinces of the DRC could contribute more to the revival of the economy if it is well managed. We learn in particular that the east of the country, a region long affected by armed conflict, receives the largest share of these funds and that poor management could compromise the effectiveness of development projects.
Other articles, such as “IPAS closes a sexual health campaign for displaced Bulengo providing access to safe abortions and dignity kits” or “Insecurity in the DRC: 14 civilians detained by Ugandan ADF rebels, the population called for vigilance” suggest that the political and security instability in the DRC remains a source of concern for investors and, consequently, for the exchange rate.
Despite these challenges, the President of the DRC, Felix Tshisekedi, continues to encourage foreign investors to come and invest in the DRC, as evidenced by the article “Felix Tshisekedi urges Botswana economic operators to invest in the DRC during an official visit ». We can therefore hope that these calls for investment will bear fruit to enable the country to consolidate its economic stability and move towards sustainable growth.