Congolese Franc Surge: Why Kinshasa Residents Aren’t Feeling the Relief Yet
KINSHASA, DRC – In a surprising turn of events, the Congolese franc (CDF) has experienced a significant and rapid appreciation against the US dollar over the past few days. While the government hails this as a triumph of its monetary policy, a stark disconnect exists between the official exchange rate and the lived realities of everyday Congolese citizens. Archyde’s on-the-ground reporting reveals a complex situation where distrust and economic inertia are preventing the benefits of a stronger franc from reaching those who need them most.
From 2,900 to 2,400 FC: The Numbers Tell a Story
Just days ago, one US dollar could be exchanged for between 2,800 and 2,900 CDF. Now, the rate has plummeted to around 2,550, and in some instances, even 2,400 CDF. This represents a substantial shift, prompting cautious optimism from the government. However, this optimism isn’t shared by many in Kinshasa, where the prices of essential goods remain stubbornly high. This discrepancy is fueling skepticism and raising questions about the effectiveness of the government’s economic strategies.
“The Dollar Fell, But Our Plates Are Still Empty” – Voices from the Market
“The US dollar has dropped, but food prices have not followed this trend on the market. This situation further complicates the social life of the Congolese population,” lamented Christian, a shopper interviewed at a Kinshasa store. This sentiment is echoed throughout the city’s bustling markets. While some traders claim to accept the Congolese franc, many still prioritize transactions in dollars, citing concerns about volatility and access to sufficient change.
Maman Joelle, a fish seller at Kinshasa’s central market (Zando), explained, “We accept the Congolese franc, but customers still prefer to buy in dollar. In addition, there are often missing cuts to make the currency.” Wholesalers are facing similar challenges, struggling to adjust to the rapidly changing exchange rate and maintain consistent pricing. Papa Matthieu, a food wholesaler, admitted, “Prices change almost every day depending on the exchange rate. This complicates our management, we sometimes no longer even know how to set ourselves.”
Double Pricing and Distrust: A System of Unease
A concerning trend has emerged: dual pricing. Some traders are openly applying different exchange rates depending on the currency used. Mama Anne, a clothing saleswoman, revealed, “We are changing the dollar to 26,000 FC, but an article at 10 dollars remains sold as such. If a customer pays in francs, he is asked 28,000 FC. We prefer the dollar, because we still buy our goods at the same price as before, $10 for 30,000 FC.” This practice underscores a lack of confidence in the franc’s stability and a preference for the perceived safety of the US dollar.
Timid Decreases and the Stock Issue
While widespread price reductions haven’t materialized, some minor decreases are being observed. Maman Irène, a spice seller, noted reductions in the price of onions, bouillon cubes, and tomatoes. However, the underlying issue remains: many goods were purchased at the higher exchange rate, and merchants are hesitant to lower prices until their existing stock is depleted. As Mr. Claude, a merchant, explained, “I bought my rice bags at 29,000 FC per dollar. I have to resell them at this price to avoid losses. Prices will only drop when wholesalers align themselves.”
Government Response and Skepticism
On September 29th, the Ministry of the National Economy announced a drop in bread prices in select Kinshasa bakeries via X (formerly Twitter). However, reports from the Matete districts indicate that prices remain unchanged. This disconnect between official announcements and on-the-ground reality is fueling skepticism, as voiced by resident Patrick: “Nothing has moved, the bread is always sold at the same price as a week ago. What we have hoped for a long time is a real drop in prices for basic necessities, especially the bread that we consume daily.”
Opposition leader Delly Sesanga has also questioned the authenticity of the exchange rate improvement, labeling it “almost dummy” and criticizing its lack of tangible impact on the lives of ordinary Congolese citizens.
The Bigger Picture: Liquidity, Stability, and Economic Fundamentals
Economists caution that a sustained appreciation of the franc requires a stable economic environment and adequate liquidity. Lionel Kabeya, an expert in monetary economics, highlights the shortage of Congolese franc banknotes in circulation and calls for improved distribution. He also emphasizes that exchange rate fluctuations don’t automatically translate into price changes, citing the impact of existing stock levels and inherent economic instability. “The drop in prices comes later than that of the exchange rate, in order to avoid traders with losses linked to variations,” Kabeya explained.
As of October 4th, the Central Bank of Congo (BCC) indicates an official exchange rate of 2,507.72 CDF per US dollar. However, market rates continue to vary, ranging from 25,000 to 26,000 CDF, highlighting a persistent gap between official figures and real-world transactions.
The situation underscores the delicate balance between political will and economic realities. While the appreciation of the Congolese franc represents a potential opportunity, its benefits will only be realized through sustained stability, improved liquidity, and a concerted effort to address the underlying economic challenges facing the Democratic Republic of Congo. For now, Kinshasa residents remain cautiously optimistic, hoping for a future where a stronger franc truly translates into a more affordable life.
Stay tuned to Archyde for continued coverage of this developing story and in-depth analysis of the DRC’s evolving economic landscape. Explore our DRC Economy Section for more insights and breaking news.
