The Congolese franc is gradually regaining its stability against foreign currencies
The haemorrhage of the depreciation of the Congolese franc against foreign currencies finally seems to be attenuated. After weeks of freefall, the exchange rate between the Congolese franc and the US dollar is showing signs of stabilization. On the parallel market, the rate fell from 2,600 Congolese francs to one US dollar to around 2,200 Congolese francs, while the Central Bank of Congo (BCC) rate stood at 2,300 Congolese francs.
This improvement is the result of the urgent measures taken by the government to control the exchange rate of the Congolese franc. Aware of the impact of the depreciation on the purchasing power of the population, President Félix Tshisekedi brought together different stakeholders, including members of the government, representatives of the banking sector and companies, to find solutions.
A total of eight measures were adopted at this meeting. The Central Bank of Congo will continue its interventions on the foreign exchange market by making foreign currency reserves available. Rigorous management of public finances will also be put in place, with a limitation of expenditure to essential priorities and the prohibition of cash payments to the Central Bank of Congo.
Other measures include the supervision of foreign exchange transactions carried out by foreign exchange offices, a reinforcement of the repatriation of foreign currencies and taxation measures for companies that do not declare their tax activities.
Nearly two weeks after the announcement of these measures, the governor of the Central Bank of Congo signaled an appreciation of the Congolese franc on the goods and services market. However, a slight depreciation was observed on the interbank market. She stressed the importance of maintaining stabilization measures to address internal risks related to public spending and exchange rate volatility.
This improvement in the exchange rate of the Congolese franc is encouraging news for the Congolese population. However, it is essential to continue to monitor the situation closely and to implement stable economic and financial policies to ensure the sustainability of this stability