Summary of the economic situation in the DRC: Stability despite some tensions
In an uncertain global economic context, the Governor of the Central Bank of Congo, Malangu Kabedi Mbuyi, gave an update on the country’s economic situation during her participation in the meeting of the Council of Ministers. According to his statements, the Congolese economy remains generally stable despite some tensions observed in the goods and services market.
Inflation, which measures the increase in prices, remained relatively subdued during the last week of June 2023, rising by 0.59% compared to the previous week. This is mainly due to changes in the prices of food and non-alcoholic beverages, housing, water, gas, electricity, fuels and transport.
The indicative exchange rate, which measures the value of the Congolese currency against the US dollar, stood at 2411 FC for $1, recording a downward trend compared to the previous week. This same trend was observed on the parallel market, with an exchange rate of 2427.5 FC for $1.
Faced with these challenges, the Central Bank of Congo has taken measures to reduce the pressures exerted by excess liquidity on the prices of goods and the exchange rate. In particular, it increased the key rate of the central bank and the coefficient of the compulsory reserve on deposits in Congolese francs for life. This aims to support production and reduce dependence on imports.
The Governor also stressed the importance of controlling speculation in the currency market. Foreign exchange offices and manual currency traders must scrupulously respect the regulations issued by the Central Bank of Congo, in particular the ban on publicly displaying exchange rates.
This stable economic situation in the DRC is all the more crucial in a global context marked by sluggish growth and inflationary pressures in several major economies. Moreover, the country must face the impact of imported inflation and the aggression of its borders by Rwanda. In this context, the Governor recommended the maintenance of the coordination of budgetary and monetary policies as well as the respect of the stability pact which prohibits the monetary financing of the State deficit.
It is essential to underline that the depreciation of the Congolese currency against the US dollar represents a major challenge for the country’s economy. Not only does it drive up the prices of basic necessities, but it also provides opportunities for exchange rate manipulation by traders. It is therefore essential to find lasting solutions to stabilize the currency and support the economic growth of the DRC..
In conclusion, despite the tensions observed on the goods and services market, the Congolese economy remains globally stable. The Central Bank of Congo is putting in place measures to ease pressures on prices and the exchange rate while encouraging the government to support production and reduce dependence on imports. Economic stability is essential to ensure the country’s sustainable development and improve the living conditions of the Congolese population.