Faced with the growing devaluation of the Congolese franc against the US dollar, the economy of the Democratic Republic of the Congo continues to face significant challenges. According to a recent report by the country’s Central Bank, the situation in the foreign exchange market as well as in goods and services is worrying.
According to the report, the depreciation of the Congolese franc continued in the last week of June 2023, with an indicative exchange rate of 2,411 Congolese francs per US dollar. This downward trend was also observed on the parallel market, with an exchange rate of 2,427.5 Congolese francs for one US dollar.
This situation has implications not only for the purchasing power of the Congolese, but also for inflation. Weekly inflation rose from 0.24% to 0.59% in the last week of June, with prices accelerating in the country’s main cities, such as Kinshasa, Lubumbashi and Goma.
To deal with this situation, the Governor of the Central Bank of Congo recalled the measures taken in June, in particular the raising of the bank’s key rate and the increase in the coefficient of the compulsory reserve on demand deposits in Congolese francs. . These measures aim to reduce the pressures exerted by excess liquidity on the prices of goods and the exchange rate.
However, it is important that the government continues efforts to support domestic production and reduce import dependency. It is also essential to fight against speculation on the foreign exchange market and to ensure compliance with the regulations in force.
In the current context of sluggish global economic growth and inflationary pressures, it is crucial to maintain the coordination of fiscal and monetary policies, as well as to preserve stability and limit the monetary financing of the government deficit.
In conclusion, the devaluation of the Congolese franc against the US dollar remains a major challenge for the economy of the Democratic Republic of Congo. Measures are being taken to deal with this situation, but it is necessary to continue to support national production and to fight against speculation on the foreign exchange market. Coordinating economic policies and maintaining stability are key to overcoming these challenges and promoting the country’s economic development