Central Bank of Congo Mandates Use of Congolese Francs for Electronic Payments

Kinshasa, Democratic Republic of Congo — The Central Bank of Congo (BCC) has announced a significant policy change mandating that all Electronic Payment Terminals (EPTs) in the Democratic Republic of Congo (DRC) exclusively accept Congolese francs. This strategic move is designed to enhance the use of the national currency and reduce the country's heavy reliance on the US dollar, which has been weakening the franc.

The BCC stated that this measure aims to strengthen the national currency's use and encourage the population to prefer it for everyday transactions involving goods and services. This initiative is part of a broader series of reforms initiated by Nicolas Kazadi, the former Minister of Finance, aimed at combating the dollarization of the economy and promoting financial inclusion.

Currently, a mere 13% of EPTs in the DRC accept Congolese francs, with the majority favoring foreign currencies, particularly the US dollar. The new BCC policy supports previous measures that required prices and state payments to be denominated in the national currency.

In addition to mandating the use of Congolese francs in EPTs, the BCC is also introducing a "switch monétique" initiative. This initiative will integrate all bank cards to streamline transactions, regardless of the issuing bank. The policy aims to make dollar transactions more costly than those conducted in francs, thereby encouraging both businesses and individuals to utilize the national currency.

Economists and experts, including AL Kitenge, have praised the BCC's measures but caution that ensuring the franc's stability is crucial for the long-term success of these dedollarization efforts. Kitenge emphasized that while the policy changes are positive, the franc's stability will be a key factor in achieving sustained economic improvement and financial inclusion.

These reforms reflect the DRC's ongoing efforts to strengthen its economic sovereignty and foster a more inclusive financial environment for its population. The BCC's decisive actions represent a significant step towards reducing the dominance of foreign currencies and promoting the Congolese franc as the preferred medium of exchange in the country's economy.