Economic news in the Democratic Republic of Congo: Stability despite some tensions
In a recent report of the meeting of the council of ministers in the DRC, the governor of the Central Bank of Congo, Malangu Kabedi Mbuyi, shared her analysis of the economic situation in the country. Despite some tensions observed on the goods and services market, the Congolese economy has remained stable overall.
According to information given by Malangu Kabedi Mbuyi, inflation reached 0.59% in the last week of June 2023, compared to 0.24% the previous week. This increase is mainly due to changes in the prices of food products, non-alcoholic beverages, housing, water, gas, electricity and transport. The indicative exchange rate as of June 29, 2023 stood at FC 2,411 for 1 US dollar, recording a downward trend compared to the previous week. This same trend was observed on the parallel market, where the exchange rate was 2427.5 FC for 1 US dollar.
To cope with these inflationary pressures and the depreciation of the Congolese currency, the Central Bank of Congo has taken measures, in particular by raising its key rate and increasing the coefficient of the compulsory reserve on deposits in Congolese Franc. Malangu Kabedi Mbuyi also encouraged the government to support domestic production and reduce import dependency.
The Governor also expressed concern about speculation in the exchange rate. She reminded exchange offices and manual currency traders of the need to scrupulously respect the regulations of the Central Bank of Congo, which prohibits any public display of the exchange rate.
Due to factors such as sluggish global economic growth, inflationary pressures in other major economies and the consequences of Rwanda’s aggression in the DRC, Malangu Kabedi Mbuyi recommended continued coordination between fiscal policies and monetary. She underlined the importance of maintaining the stability pact and of not financing the State deficit through monetary creation.
Since the beginning of 2023, the DRC has been facing a depreciation of its currency against the US dollar, which has led to an increase in the prices of basic necessities. The Congolese authorities are therefore working actively to stabilize the economy and reduce inflationary pressures.
In conclusion, although tensions persist in the goods and services market in the Democratic Republic of Congo, the country’s economy has managed to maintain a certain stability. The measures taken by the Central Bank of Congo and the efforts of the government aim to support national production and reduce dependence on imports, with the aim of improving the economic situation of the country