DR Congo Seeks to Curb Dollar Dominance by Promoting Local Currency

By Samkele Mchunu

DR Congo Implements Measures to Boost Use of Congolese Franc and Curb Dollar Dominance. Central Bank Mandates Use of Congolese Francs for Electronic Payments in New Economic Reform

In a strategic move to bolster the use of the national currency and reduce dependency on the US dollar, the Central Bank of Congo (BCC) has mandated that all Electronic Payment Terminals (EPTs) in the Democratic Republic of Congo (DRC) must only accept Congolese francs. This directive is a significant step in a broader initiative to strengthen the national economy and promote financial inclusion.

The BCC announced that this measure is aimed at reinforcing the use of the Congolese franc for everyday transactions. “Strengthening our national currency and encouraging the population to use it for goods and services is crucial for our economic stability,” stated a BCC spokesperson.

This mandate forms part of a series of reforms launched by Nicolas Kazadi, the former Minister of Finance, targeting the pervasive dollarization of the DRC’s economy. At present, only 13% of EPTs in the country accept Congolese francs, reflecting a heavy reliance on foreign currencies, particularly the US dollar.

The new policy is designed to support previous measures that require prices and state payments to be conducted in the national currency. Additionally, the “switch monétique” initiative will integrate all bank cards, streamlining transactions irrespective of the issuing bank. This integration aims to make transactions in dollars more expensive compared to those in francs, thereby encouraging businesses and individuals to favor the national currency.

Economist AL Kitenge highlighted the potential benefits of these measures, emphasizing the need for a stable franc. “While these reforms are positive, ensuring the stability of the Congolese franc is essential for the long-term success of dedollarizing the economy,” he commented.

These reforms are expected to significantly impact the daily lives of Congolese citizens and the business community. By reducing the reliance on the dollar, the government hopes to create a more resilient and inclusive financial system.

The BCC’s proactive approach reflects a broader trend among nations seeking to regain monetary sovereignty and reduce their dependence on foreign currencies. As the DRC continues to implement these reforms, the international community will be watching closely to gauge their effectiveness and potential as a model for other economies facing similar challenges.

With these new policies in place, the DRC is poised to embark on a path towards greater economic independence and stability, ultimately aiming to strengthen the national economy and improve the financial well-being of its citizens.