DRC: the national currency, the Congolese franc unscrews

The business district of Kinshasa in the DRC, the commune of Gombe, was completely confined for two weeks, on April 19, 2020. REUTERS / Kenny Katombe

Text by: RFI Follow

In the Democratic Republic of Congo, once again, the national currency is losing ground against the dollar, in the midst of a coronavirus pandemic. In the capital Kinshasa, the epicenter of the epidemic, the dollar reached 1,850 Congolese francs. For the authorities, this is not justified economically. Some analysts speak of speculation. 

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with our correspondent in Kinshasa, Pascal Mulegwa

On Kasavubu Avenue, Thambwe is stacking bundles of banknotes. Sitting under an umbrella, he trades the franc for the dollar. "  For each his rate, I do it at 1800 or even 1820  ". Four days ago, the currency was exchanged for 1,700 or even 1,750 Congolese francs.

This Sunday, Armand, a civil servant, came to convert part of his salary. He fears the consequences of this surge on his purchasing power. "  Today in 1850, tomorrow will be 19 then 20 ... always the rate goes up ... and for the unemployed, for the one who does not work ?? the situation is getting worse!  "

This situation, some analysts like Hubert Mpunga, attribute it to a form of speculation. Nothing on the macroeconomic or official level justifies this surge in exchange rates, which he says is explained by the containment measures due to the coronavirus epidemic which led to pressure on demand and more complicated access to the Gombe -the business district- which reduced the dollar supply. "  Forex traders have benefited! it was the forex traders who exaggerated,  "he assures us.

Even speech on the side of the central bank, nothing would cause such a fall of the franc in this period, ensures an official. Even if, since January, the BCC admits having multiplied the advances to the State and created a surplus of money supply in Congolese francs.

On its site, the bank of banks displays a rate of 1720 the dollar. While in all major Congolese cities, the rate among forex traders is more than 1800.

►Read also: Africa facing the pandemic on Sunday April 26

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