Title: The evolution of the foreign exchange market in the Democratic Republic of Congo
Introduction :
The economic situation in the Democratic Republic of Congo (DRC) is at the heart of the concerns of the government and economic actors. During the last meeting of the Council of Ministers, the governor of the Central Bank of Congo (BCC), Malangu Kabedi Mbuyi, took stock of recent developments in the foreign exchange market as well as goods and services in the country.
Economic growth down slightly:
According to BCC estimates, growth in real Gross Domestic Product (GDP) of the Congolese economy is expected to reach 6.2% in 2023, compared to 8.9% in 2022. This drop is partly explained by the effects of the global situation, marked by concerns about economic development. Nevertheless, the BCC forecasts growth of 6.4% in 2024, suggesting encouraging prospects for the Congolese economy.
The foreign exchange market and commodity prices:
The governor of the BCC also highlighted the evolution of the foreign exchange market in the DRC. At the national level, the national currency, the Congolese Franc, experienced a depreciation of 1.8% compared to the indicator. However, on the parallel market, the Congolese Franc appreciated slightly by 0.04%. This situation reflects fluctuations in the foreign exchange market and the volatility of the Congolese currency.
Furthermore, the BCC observed significant movements in the prices of raw materials, which are key export products for the Congolese economy. Copper prices increased slightly by 1.06%, while cobalt prices saw an increase of 0.03%. On the other hand, the price of oil recorded a drop of 3.37% compared to the previous week.
Inflation and economic challenges:
Weekly inflation in the DRC accelerated by 0.042%, reaching a rate of 0.25% during the week under review. This increase can be explained in particular by the recent upward revision of the price of fuel at the pump. This situation highlights the economic challenges facing the DRC, with inflationary pressures impacting consumers’ purchasing power.
Conclusion :
The evolution of the foreign exchange market and the economy in general in the Democratic Republic of Congo is a major concern for the government and economic actors. Despite a slight decline in economic growth, encouraging prospects are envisaged for the future. However, fluctuations in the foreign exchange market, volatile commodity prices and economic challenges linked to inflation remain factors to monitor closely.