The challenges of the depreciation of the Congolese franc against the US dollar
The Democratic Republic of Congo (DRC) is facing a complex economic situation, marked in particular by the depreciation of the Congolese franc against the US dollar. This trend, which has persisted for some time, raises many economic and social issues for the country.
A recent study by the Central Bank of the DRC highlights this continuous depreciation of the Congolese franc. According to the data presented, the indicative exchange rate reached 2,411 Congolese francs for one US dollar on June 29, 2023, registering a decrease compared to the previous week. This phenomenon is also observed on the parallel market, where the exchange rate stands at 2,427.5 Congolese francs for one US dollar.
One of the direct consequences of this depreciation is inflation. Indeed, the study reveals an increase in inflation, with a rate of 0.59% during the last week of June. This price growth mainly affects sectors such as food, housing, energy and transport.
Faced with this situation, the governor of the Central Bank of Congo, Malanga Kabedi, underlined the adoption of measures aimed at controlling excessive liquidity and reducing pressures on the prices of goods and the exchange rate. However, she also stressed the importance for the government to continue efforts to support domestic production and reduce import dependency.
In addition to the economic stakes, this depreciation of the Congolese franc also has social implications. Indeed, it has a direct impact on the purchasing power of Congolese households, which see their income decrease while prices increase. This leads to a deterioration of living conditions and can lead to social tensions.
To deal with this situation, it is essential to put in place coherent and effective economic and financial policies. It is crucial to promote domestic production, encourage investment and strengthen the private sector in order to reduce dependence on imports. Moreover, it is necessary to stimulate the diversification of the economy and to strengthen the productive capacities of the country.
In conclusion, the depreciation of the Congolese franc against the US dollar represents a major challenge for the DRC. It raises important economic and social issues, requiring an appropriate response from the authorities. It is essential to take effective measures to stabilize the situation and create conditions conducive to the economic development of the country