Economic stability in the DRC: 0.6% increase in the national currency on the official foreign exchange market
According to the Central Bank of Congo (BCC), the Congolese national currency, the Congolese franc, appreciated by 0.6% on the official foreign exchange market in the Democratic Republic of Congo (DRC). This data was communicated in the economic situation note for the week running from May 19 to 26. The foreign exchange market remained stable, both on the official segment and on the parallel market, with a slight appreciation of the exchange rate which stood at 2,303.55 Congolese francs for one American dollar as of May 26.
However, on the parallel market, the Congolese franc depreciated slightly by 0.11% on a weekly basis, placing the rate at 3,354.8 Congolese francs, according to the same information note from the BCC. It should be noted that the exchange rate on the parallel market is often higher than the official market.
Despite the relative stability of the foreign exchange market, the execution of the foreign currency budget, as of May 23, 2023, resulted in a deficit of 94.09 million US dollars, resulting in receipts of 68.9 million US dollars and expenditures of US$162.9 million. Nevertheless, international reserves, which represent an import cover of 2.25 months, stood at 4.1 billion dollars as of May 25, showing a certain resilience of the Congolese economy.
This appreciation of the national currency on the official foreign exchange market is encouraging for the economic stability of the DRC. However, the government should also work to reduce the parallel exchange rate to make the currency more accessible to the Congolese population. In addition, there are still challenges to overcome, especially in terms of the budget deficit, which require special attention from the country’s economic authorities.