Kinshasa press review of Friday August 11, 2023: Volatility of the Congolese franc and measures taken by the government
In the newspapers published this Friday in Kinshasa, the volatility of the national currency, the Congolese franc, on the foreign exchange market is at the heart of the concerns. The various publications review the measures taken by the government to deal with this situation.
The article entitled “Temporary appreciation of the FC on the market, Kamerhe still faces the yo-yo of the dollar” of the Congo Nouveau newspaper highlights the statements of the Deputy Prime Minister and Minister of National Economy, Vital Kamerhe. The latter indicated that the government has taken additional measures to combat the high exchange rate of the Congolese franc. He expresses his confidence in these measures and affirms that economic regulation is important to guarantee fair prices for all citizens.
EcoNews reports that the government and the Central Bank of Congo (BCC) are determined to deal with the volatility of the exchange rate and domestic prices. The BCC has decided to tighten its monetary policy by increasing its key rate from 11% to 25%. The Monetary Policy Committee (MPC) also recommends stronger coordination between fiscal and monetary policies to deal with economic shocks.
However, the article in L’Avenir highlights an economist’s doubts about the effectiveness of these measures. According to him, the use of the key rate by the BCC will have no impact on inflation and the exchange rate. He points out that it will instead lead to a contraction of economic activity, unemployment and a scarcity of products, which could worsen inflation and currency depreciation.
By analyzing these various articles, it is clear that the volatility of the Congolese franc remains a major concern for the government and the population. The measures taken, in particular the increase in the key rate by the BCC, raise questions about their long-term effectiveness. It will be interesting to follow the evolution of the economic situation in the DRC and the impact of these measures on future monetary stability