Public Management

DRC: Central Bank raises key rate to 18.5% from 7.5% to cushion the slide of local currency

DRC: Central Bank raises key rate to 18.5% from 7.5% to cushion the slide of local currency
Monday, 17 August 2020 13:34

Last week, the Central Bank of DR Congo more than doubled its key interest rate from 7.5% to 18.5% to keep inflation in check and cushion the depreciation of the local currency (the Congolese franc) against the US dollar.

According to Deogratias Mutombo (pictured), the bank governor, the slide of the currency has led to a hike in prices, thus further lowering consumers’ purchase power. As a reminder, a few months ago, the rate was dropped to 7.5% from 9% to face the fallouts of Covid-19 on the economy.

“This was to support economic activity and allow refinancing. It was a measure that had been taken in several African countries. Now that there is excess liquidity and to contain monetary expansion, we have made this upward adjustment,” Governor Mutombo said at a press conference.

The central bank expects economic growth of 2.4% this year; a downward adjustment mainly due to the forecasted impact of the pandemic on the mining sector. According to the latest AU assessment, the disease has already affected 9,676 people in DRC, including 239 deaths and 8,705 recoveries.

Moutiou Adjibi Nourou

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Côte d’Ivoire will receive $234 million for a sustainable urban mobility project in Abidjan. Gambia will receive $32.2 million to build...
Stanbic IBTC and Zenith Bank cut monthly card spending abroad to $500 and $200 Foreign reserves fall by $3.5 billion in six...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 million in transactions by end-2025. The fintech...
• Kenya and ASR sign deal to reduce risk on projects worth up to $2 billion.• Risk cover will target infrastructure, energy, logistics, and trade...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
03

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
04

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
05

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.