News: The rise of the dollar in the Democratic Republic of Congo worries citizens
The economic situation in the Democratic Republic of Congo (DRC) is fueling citizens’ concerns, particularly regarding the high cost of living due to high inflation. One of the factors contributing to this situation is the rise of the US dollar against the Congolese franc.
Demonstrations of discontent with this situation are increasing in the country. During the opening of the Francophonie Games last July and during the launch of Félix Tshisekedi’s electoral campaign in November, citizens expressed their concern about the rise in the dollar.
According to the Central Bank, cumulative inflation stands at 2.3% for this week, an increase of 33% over the year. The depreciation of the Congolese franc against the dollar is largely responsible for this situation. Over the past year, the national currency has lost more than 20% of its value against the dollar.
The government attributes this situation to external factors such as the consequences of the Covid-19 pandemic and the repercussions of the war in Ukraine. Variations in raw material prices, notably the fall in cobalt prices, are also cited as elements contributing to this increase.
Internally, the financing of the electoral process and the war in the east of the country against the M23 rebel group also resulted in considerable expenditure for the government.
Some experts believe that the abundance of money in circulation during the election period may also play a role in the rise of the dollar. The Prime Minister also warned those responsible for monetary issues and the supply of fuel and essential foodstuffs, urging them to be vigilant.
This situation highlights the economic challenges facing the DRC and underlines the need to find solutions to stabilize the economy and preserve the purchasing power of citizens. The government will have to take effective measures to deal with this rise in the dollar and to mitigate the impact on the population.