Title: Banks in the Democratic Republic of Congo record a significant increase in their holdings at the Central Bank
Introduction :
As of July 14, 2023, commercial banks in the Democratic Republic of the Congo have experienced a remarkable increase in their national currency holdings deposited with the Central Bank. According to a report by the Central Bank of Congo (BCC), banks’ current account holdings increased by 272.1 billion Congolese Francs on a weekly basis. This information testifies to the growing confidence of banks in the national economy, despite the financial and economic challenges facing the country.
Development :
The report of the Central Bank of Congo indicates that the cumulative level of assets of commercial banks in national currency in current account amounts to 3,193.4 billion Congolese Francs (CDF) since the beginning of the year. This represents a significant increase compared to the same period of the previous year. In addition, the net position of assets in national currency of commercial banks recorded a positive increase of 817.8 billion Congolese Francs (CDF), against 545.7 billion the previous week.
The compulsory reserve in national currency notified by the Central Bank was 2,375.6 billion Congolese Francs (CDF), while the compulsory reserve in foreign currency amounted to 321.8 billion Congolese Francs (CDF). These figures reflect the solid position of commercial banks in terms of liquidity and ability to meet regulatory requirements.
This increase in commercial bank assets can be interpreted as an indication of investor confidence in the Congolese economy. Despite the many challenges facing the country, such as political instability, insecurity and structural problems, banks continue to invest and develop their activities in the Democratic Republic of Congo. It also testifies to the Congolese government’s desire to create an environment conducive to investment and economic growth.
Conclusion :
The significant increase in commercial bank assets in national currency at the Central Bank of Congo is a positive sign for the country’s economy. This demonstrates the confidence of banks and investors in the growth potential of the Democratic Republic of Congo, despite the existing challenges. The Congolese government should continue to encourage this development by putting in place economic and financial policies favorable to investment and by strengthening the country’s economic stability