Title: Depreciation of the national currency in the DRC: the measures taken to put an end to it
Introduction :
The Democratic Republic of the Congo is facing a depreciation of its national currency on the foreign exchange market, a problem which is not unique to this country but which nevertheless fuels economic concerns. Aware of this situation, the head of government, Jean-Michel Sama Lukonde, brought together the budget and finance ministers as well as the governor of the Central Bank of Congo (BCC) to find solutions. In this article, we will explore the measures taken to stop the depreciation of the national currency and maintain the economic stability of the country.
1. Daily publication of the official and parallel exchange rate:
To fight against inflation and the depreciation of the national currency, the Prime Minister gave clear instructions. From now on, the Central Bank of Congo will publish the official and parallel exchange rate daily in the media. This transparency aims to inform the population on the evolution of the exchange rate and to reduce the uncertainties concerning the value of the local currency.
2. Compulsory display of the exchange rate inside exchange offices:
Another measure put in place is the obligation for exchange offices to display the exchange rate inside their premises, rather than outside. This will allow consumers to know the current exchange rate before making a transaction, thus avoiding surprises or disadvantageous transactions.
3. Publication of the Central Bank of Congo key rate:
The government also plans to publish the Central Bank of Congo’s key rate in the coming weeks. By increasing this rate, the demand for the local currency could be reduced, which would help stabilize its value in the foreign exchange market. This measure aims to absorb excessive liquidity and promote the stability of the national currency.
4. Use of conventional instruments to contain the crisis:
Finally, the Budget Minister, Aimé Boji, underlined that the Central Bank of Congo will continue to use all the classic instruments available to resolve the currency depreciation crisis. This may include measures such as regulating the money supply, tightening monetary policies and other actions aimed at stabilizing the country’s economy.
Conclusion :
Faced with the depreciation of the national currency in the Democratic Republic of the Congo, the government has taken firm measures to stem this economic crisis.. The daily publication of the official and parallel exchange rate, the compulsory display of the exchange rate inside exchange offices, the publication of the Central Bank’s key rate and the use of traditional instruments are all measures that aim to halt the depreciation of the national currency and maintain the country’s economic stability. It now remains to follow the evolution of these measures and to hope that they will bear fruit for the Congolese economy