The Central Bank of Congo (BCC) has ordered that all Electronic Payment Terminals (EPTs) in the Democratic Republic of the Congo (DRC) accept only Congolese francs.
This strategy tries to encourage the use of the national currency while reducing reliance on the US dollar, which weakens the franc.
According to the BCC, the goal of this policy is to strengthen the use of the national currency and encourage people to use it for routine transactions of goods and services.
This program is one of the key changes initiated by Nicolas Kazadi, the former Minister of Finance, to combat dollarization and promote financial inclusion.
Only 13% of EPTs now accept Congolese francs, indicating a preference for foreign currencies in a dollarized economy.
The BCC’s new policy reinforces prior policies requiring prices and governmental payments to be in the national currency.
Furthermore, a “switch monétique” program will combine all bank cards to expedite transactions, independent of the originating bank.
This policy intends to raise the cost of dollar transactions relative to franc transactions, encouraging businesses and individuals to adopt the national currency.
Experts, including economist AL Kitenge, emphasize that, while these steps are beneficial, maintaining the franc’s stability is critical for long-term success in depolarizing the economy.
