Kinshasa press review of Friday August 11, 2023
Economic news occupies a prominent place in the newspapers published this Friday in Kinshasa, particularly because of the volatility of the national currency, the Congolese franc, on the foreign exchange market.
The article titled “Temporary appreciation of the FC on the market, Kamerhe still faces the yo-yo of the dollar” of the Congo Nouveau newspaper highlights the measures taken by the government to deal with this situation. The Deputy Prime Minister and Minister of National Economy, Vital Kamerhe, assures that additional measures have been taken to strengthen the Central Bank’s strategies aimed at combating currency speculation and dedollarizing the Congolese economy. According to Kamerhe, the objective is to stabilize the currency and strengthen the purchasing power of the population.
In another article entitled “The government and the Central Bank of Congo in battle order in the face of exchange rate volatility” published by EcoNews, we learn that the Central Bank is betting on the key rate to tighten monetary policy and support the macroeconomic stability. The article also highlights the importance of coordinating fiscal and monetary policy actions to address shocks and risks facing the national economy.
However, not all decisions taken by the Central Bank are unanimous. In an article in L’Avenir, an economist questions the effectiveness of using the key rate to curb non-monetary behavior. According to him, this could lead to a contraction of economic activity, unemployment and a further rise in inflation and currency depreciation.
In conclusion, it is clear that the volatility of the exchange rate and the stabilization of the Congolese franc are major issues for the Congolese economy. The government and the Central Bank are putting in place measures to deal with it, but questions remain about the effectiveness of these measures. Coordinating fiscal and monetary policy actions is crucial to ensure long-term economic stability. However, it is also important to take into account the divergent opinions of experts and to continue to adjust strategies according to market realities