Faced with the continued depreciation of the Congolese franc against the US dollar, the economic situation in the Democratic Republic of Congo (DRC) raises growing concerns. According to a recent report by the country’s Central Bank, the Congolese franc’s exchange rate has reached an alarming level, raising concerns about the impact on the purchasing power of citizens and the economy as a whole. .
In the last week of June 2023, an increase in inflation was observed, with an increase in prices in the main consumption functions such as food, housing, water, gas, electricity and transport. This upward price trend was particularly marked in the main cities of the country, notably Kinshasa, Lubumbashi and Goma.
At the same time, the indicative exchange rate between the Congolese franc and the US dollar experienced a sharp depreciation. The Central Bank report indicates that the exchange rate stood at 2,411 Congolese francs per US dollar on June 29, 2023, registering a decline from the previous week. This downward trend was also observed in the parallel market, with an exchange rate of 2,427.5 Congolese francs per US dollar.
To deal with this situation, measures have been taken by the Central Bank of Congo, in particular the increase in the key rate and the raising of the coefficient of the compulsory reserve on deposits in Congolese francs. The objective of these measures is to reduce the pressure exerted by excess liquidity on the prices of goods and the exchange rate.
However, it is important to emphasize that the depreciation of the Congolese franc cannot be attributed solely to internal factors. The global economic situation, marked by sluggish growth and inflationary pressures in major economies, as well as the impact of imported inflation and the aggression of the DRC by Rwanda, also contributed to this depreciation.
Faced with this situation, it is essential that the Congolese government continues to support local production and reduce excessive dependence on imports. Additional measures should be taken to stimulate the economy, encourage investment and strengthen monetary stability.
In conclusion, the continued depreciation of the Congolese franc against the US dollar in the DRC raises concerns about its impact on the economy and on the daily lives of citizens. Concerted actions must be taken to stabilize the exchange rate and protect the purchasing power of the Congolese