Fatshimétrie: Analysis of the evolution of the Congolese Franc exchange rate against the US dollar in 2024
The week of August 19 to 23, 2024 was marked by a series of major economic events in the Democratic Republic of Congo, particularly with regard to the appreciation of the Congolese Franc (CDF) against the US dollar (USD). Data published by the Central Bank of Congo (BCC) revealed interesting trends on the official and parallel markets.
According to official statistics from the BCC, the Congolese Franc exchange rate against the US dollar stood at 2,795.35 CDF for 1 USD on August 23, 2024. This value represents an increase of 1.70% compared to the previous week, showing some stability on the interbank market.
However, the exchange rate on the parallel market was slightly different, with a depreciation of 1.0% compared to the previous week, setting the rate at 2,870.32 CDF for 1 USD. This divergence between the official and parallel markets highlights the persistent challenges facing the Congolese economy.
On an annual basis, the Congolese Franc recorded significant losses in value, with a depreciation of 4.14% on the official market and 6.40% on the parallel market. These figures reflect the inflationary pressures and currency fluctuations weighing on the national economy.
Despite these challenges, the DRC government and the BCC have shown their determination to stabilize the national currency. The country’s foreign exchange reserves reached a comfortable level of USD 6.059 billion as of August 16, 2024, equivalent to approximately 14 weeks of imports. This situation contributes to maintaining the stability of the exchange rate and strengthening investor confidence.
To ensure financial sustainability, the Congolese government has made significant repayments of maturing government securities. As of August 14, 2024, it has honored payments amounting to 1,685.1 billion Congolese francs, mainly Treasury Bills and Treasury Bonds. These debt issues are crucial to fill budget gaps and finance development projects.
Despite economic challenges, the Congolese authorities remain committed to promoting macroeconomic stability and attracting the investments needed for the country’s growth. Controlling the Congolese franc exchange rate is essential to improve household purchasing power and create a favorable business environment.
In conclusion, the evolution of the Congolese franc exchange rate against the US dollar in 2024 reflects the sustained efforts of the government and the BCC to maintain financial stability despite a complex economic context. Challenges remain, but a coherent and forward-looking economic policy could pave the way for a more prosperous future for the Democratic Republic of Congo.