DRC Central Bank Governor Aims to Strengthen the Congolese Franc and Reduce Dollarization

DRC Central Bank Governor Unveils Strategy to Restore Confidence in the Congolese Franc

The Democratic Republic of Congo’s new central bank governor, Andre Wameso, has laid out an ambitious plan to restore public confidence in the Congolese franc and reduce the country’s overwhelming reliance on the US dollar.

Nearly 90% of transactions in the DRC are conducted in dollars, leaving the local currency marginalized and unstable.

The Congolese economy is among the most dollarized in Africa. From major commodity exports like copper, cobalt, oil, and gold, to everyday expenses such as rent, restaurant bills, and even airport fees, the US dollar dominates.

Even salaries paid in francs are often converted immediately into dollars to safeguard value.

This heavy dependence is rooted in the country’s turbulent financial history. Many Congolese still remember the hyperinflation of the 1990s, and today, the franc continues to trade near record lows against the dollar, according to Bloomberg.

Speaking to Bloomberg, Wameso emphasized the urgent need to rebuild trust in the national currency:

“If the economy is so dollarized, it’s because we import almost everything we consume. We need the population to trust its money again, because I don’t think we can build a new Congo with a currency other than the national currency.”

To achieve this, he outlined several measures:

Establishing a Clearing House: Wameso plans to work with the US Treasury to create a central bank clearing system.

This would allow dollar transactions to be processed locally rather than through correspondent banks abroad, which often delays transfers.

Reforming Key Sectors: Confidence in the franc will depend on broader economic reforms. Wameso proposes restructuring the social security system and reforming the housing market so that construction materials, mortgages, and financing are priced and paid in francs.

Developing Franc-Denominated Securities: The central bank also intends to introduce bonds and other investment tools in francs to build a yield curve and encourage savings and investment in the local currency.

Wameso acknowledges the scale of the challenge but insists that reducing dollarization is essential for building a sustainable and independent economy.

Restoring trust in the Congolese franc, he argues, will not only strengthen national identity but also stabilize the financial system and reduce vulnerability to external shocks.