De dollarization in Africa: Central Bank of Congo Mandates Exclusive Use of Congolese Francs for Electronic Payments
To promote the de dollarization The Central Bank of Congo (BCC) has issued a mandate requiring all Electronic Payment Terminals (EPTs) in the Democratic Republic of Congo (DRC) to exclusively accept Congolese francs. This measure is intended to promote the use of the national currency and de dollarization of DR Congo economy, which has been weakening the franc.
According to the BCC, this initiative is designed to strengthen the use of the Congolese franc and encourage its preference for everyday transactions involving goods and services. This policy is part of a broader set of reforms introduced by former Minister of Finance Nicolas Kazadi, aimed at combating the dollarization of the economy and enhancing financial inclusion.
Currently, only 13% of EPTs accept Congolese francs, with foreign currencies dominating in the dollarized economy. The BCC’s new policy aligns with previous regulations requiring prices and state payments to be made in the national currency.
Additionally, a “switch monétique” initiative will integrate all bank cards to streamline transactions across different banks. This policy aims to make dollar transactions more expensive than those in francs, thereby encouraging businesses and individuals to favor the national currency.
Experts, including economist AL Kitenge, emphasize that while these measures are a step in the right direction, ensuring the stability of the Congolese franc is essential for the long-term success of efforts to dedollarize the economy.
Source: africanews
