Title: Exchange rate fluctuations in the DRC: Measures taken by the government to stabilize the economy
Introduction :
The exchange rate is a crucial indicator for a country’s economy. In the Democratic Republic of Congo (DRC), fluctuations in the exchange rate have been particularly worrying lately, leading to economic instability and impacting the purchasing power of the population. The President of the Republic, Félix Tshisekedi, has taken urgent measures to deal with this worrying situation. In this article, we will examine the actions taken by the government to stabilize the exchange rate and the consequences of these measures on the Congolese economy.
1. The ban on cash payments at the counters of the Central Bank of Congo (BCC):
One of the measures taken by the government is the prohibition of cash payments at BCC counters. This decision aims to limit cash transactions and encourage electronic payments, which will allow better monitoring of financial flows and contribute to the fight against fraud and money laundering. This measure also aims to encourage economic operators to use banking services for their transactions, which will strengthen the Congolese financial system.
2. Interventions of the Central Bank of Congo on the foreign exchange market:
The BCC has also been tasked with carrying out regular and vigorous interventions in the foreign exchange market. By making foreign currency available from the country’s reserves, the BCC seeks to stabilize the exchange rate and meet the growing demand for foreign currency. These interventions aim to avoid excessive fluctuations and to maintain a certain economic stability.
3. Supervision of foreign exchange transactions by the banking sectors:
In order to better control foreign exchange operations, the government has asked the banking sectors to supervise the transactions carried out by foreign exchange offices. This measure aims to ensure that foreign exchange transactions are carried out within the limits of the real capacity of exchange offices and that they comply with the regulations in force. This will prevent speculative practices and ensure transparency in the foreign exchange market.
4. Reinforcement of currency repatriation measures:
The government has also strengthened foreign exchange repatriation measures. It is now mandatory for operators in the mining sector to repatriate a certain amount of foreign currency, including the payment of taxes, duties, fees and royalties due to the State in Congolese francs. This measure aims to increase the country’s foreign exchange reserves and prevent capital flight.
Conclusion :
Faced with the worrying and persistent evolution of exchange rate fluctuations in the DRC, the government has taken urgent measures to stabilize the economy and protect the purchasing power of the population. The ban on cash payments at BCC counters, regular interventions by the central bank on the foreign exchange market, supervision of foreign exchange transactions by the banking sectors and the strengthening of foreign currency repatriation measures are all measures aimed at restoring the country’s economic stability. It remains to be seen to what extent these measures will bear fruit and restore confidence to investors and economic actors in the DRC