The evolution of the recent situation on the foreign exchange market as well as goods and services in the Democratic Republic of Congo (DRC) was at the heart of the discussions during the Council of Ministers on Friday 28 July. The governor of the Central Bank of Congo (BCC), Malangu Kabedi Mbuyi, presented an inventory of the country’s economic situation, in a context marked by uncertainties and challenges.
Among the key elements addressed by the Governor of the BCC is the slowdown in the pace of price formation, which accelerated sharply the previous week but slowed markedly during the third week of July. Indeed, weekly inflation fell from 4% to just 0.2%, marking a significant drop in inflation.
Another positive element underlined by Malangu Kabedi Mbuyi is the appreciation of the Congolese franc on the foreign exchange market, which is the result of the stabilization measures put in place by the Central Bank of Congo in collaboration with the government. These coordinated measures have made it possible to combat exchange rate fluctuations and ease tensions in the market for goods and services.
Despite these encouraging signals, the Governor also highlighted some internal risks, such as persistent pressures on public spending, increased bank liquidity and exchange rate volatility. To face these challenges, she stressed the need to maintain the stabilization measures already in place, such as the cessation of cash payments to the Central Bank, the tightening of fiscal and monetary policy, as well as the interventions of the Central Bank on the foreign exchange market to strengthen the supply of currencies.
In order to maintain economic growth and boost productivity, the Governor also called on the Government of the Republic to pursue necessary structural reforms and diversify the production base.
This presentation of the DRC’s economic situation highlights both the progress made and the challenges the country is facing. By closely analyzing the measures taken and the efforts made, it is clear that coordinated actions between the Central Bank and the government are essential to ensure economic stability and promote growth in the DRC