Title: The depreciation of the national currency in the DRC: measures to stabilize the exchange market
Introduction :
The head of the Congolese government, Jean-Michel Sama Lukonde, recently gave clear instructions to stop the depreciation of the national currency on the foreign exchange market in the Democratic Republic of Congo (DRC). This decision comes in the context of a global economic crisis that is affecting many countries, including the DRC. In this article, we will examine the measures taken by the government to stabilize the foreign exchange market and mitigate the effects of this depreciation.
Daily publication of exchange rates:
To remedy the situation, the head of government asked the Central Bank of Congo (BCC) to publish the official and parallel exchange rates in the media every day. This transparency aims to inform economic players and create greater visibility on exchange rate variations. In addition, this measure aims to prevent speculation and encourage fair competition in the market.
Compulsory display of exchange rates:
Another important measure is to make it compulsory to display exchange rates inside exchange offices. This approach aims to avoid manipulation and opaque practices. By making exchange rates visible to customers, money changers promote trust and transparency in transactions. This measure should also discourage transactions on the parallel market and encourage players to use official channels.
Use of traditional instruments to absorb liquidity:
The government has also stressed the importance of using other classical instruments available to mitigate the crisis and stabilize the local currency. With this in mind, the Central Bank plans to raise the key rate in the coming weeks. This measure aims to reduce the excessive demand for foreign currency and to absorb the liquidity present in the foreign exchange market. By restoring the balance between supply and demand, the stability of the national currency can be preserved.
Conclusion :
The depreciation of the national currency in the DRC is a major challenge for the government. However, concrete measures have been put in place to try to stabilize the exchange market and mitigate the effects of this depreciation on the country’s economy. Transparency in the publication of exchange rates, mandatory display in exchange offices and the use of traditional instruments are all measures aimed at restoring confidence and maintaining the stability of the local currency. It is hoped that these initiatives will improve the economic situation of the DRC and create an environment conducive to growth and development