Commercial banks’ assets in national currency at the Central Bank of Congo experienced a significant weekly contraction, according to an economic situation note published by the Central Bank of Congo (BCC). Indeed, these assets decreased by 396.9 billion Congolese Francs (CDF) to settle at a total of 3,057.2 billion Congolese Francs (CDF).
According to the same source, the notified reserve requirement in national currency is 2,693.6 billion Congolese Francs (CDF), which indicates a net position of commercial bank assets in national currency of 363.6 billion Congolese Francs. (CFD). This figure marks a decrease from the level of 760.5 billion Congolese Francs (CDF) recorded a week earlier.
At the same time, the compulsory foreign currency reserve amounted to 326.0 billion Congolese Francs (CDF) over the same period. This data shows the importance of foreign exchange reserves to guarantee the stability of the financial system.
This contraction in the national currency holdings of commercial banks at the Central Bank of Congo can be explained by several factors. Among them are economic fluctuations, capital movements and the geopolitical context. These elements can influence banks’ confidence in the national currency and encourage them to diversify their holdings.
It is important to emphasize that the management of the assets of commercial banks at the Central Bank of Congo is of great importance to ensure the economic stability of the country. These assets play a crucial role in financing economic activities and regulating liquidity in the market.
It will be interesting to follow the evolution of these holdings in the coming weeks and to analyze the factors that influence these variations. The stability of the Congolese financial system depends, in part, on the confidence of commercial banks and the effective management of their assets at the Central Bank.
In conclusion, the contraction of commercial banks’ holdings in national currency at the Central Bank of Congo raises questions about the country’s financial stability. It is essential to closely monitor these developments and put in place adequate measures to maintain bank confidence and guarantee economic stability