DR Congo Pushes Interest Rate from 11% to 25%
The central bank of the Democratic Republic of Congo raised its benchmark interest rate to 25% from 11% during an extraordinary meeting held on August 8th, 2023, bringing borrowing costs to the highest since October 2011.
The country’s currency has spiraled downward, losing its purchasing power due to inflation rate conditions and surging food prices. Congo’s macroeconomic conditions mirror development in other countries in the same region.
The unemployment level in the African country has also worsened as the government continues to develop policies that will boost the real sector of the economy.
The recent adjustment follows a 200 basis points hike the country’s monetary authority booked in June, with the aim to strengthen the local currency. Amidst economic pressures, the Congolese franc has lost more than 20% of its value compared to the dollar since the beginning of the year.
DR Congo Pushes Interest Rate from 11% to 25% Naira Steadies as Banks Issue Update on FX Purchase