DRC Initiates Central Bank Recapitalization to Strengthen Financial Independence
The Democratic Republic of Congo (DRC) government has initiated a two-year process, from 2024 to 2025, to recapitalize the Central Bank, aiming to elevate its capital to 213 billion FC in compliance with existing legislation. This endeavor seeks to strengthen the institution’s financial autonomy.
Finance Minister Nicolas Kazadi revealed on Tuesday that despite the DRC holding approximately 30% of global reserves, its central bank currently lacks monetary gold. He highlighted an ongoing plan to address this deficiency.
While the gold standard system has ceased, gold retains its stature as a stable investment and store of value, particularly amid economic uncertainties, for both central banks and private investors.
Minister Kazadi clarified that the objective isn’t to turn the central bank into a gold market, emphasizing that existing laws prohibit such a transformation.
Historically, gold has functioned as a medium of exchange, forming the basis for currency creation and coin minting.
The Central Bank of Congo is entrusted with the country’s monetary policy, primarily focused on upholding price stability. As a state-owned entity, it operates independently to achieve this goal, aligning with the law while supporting the government’s broader economic policies.
