Congo Interest Rate

The central bank of 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. It follows a 200 bps hike in June, to bolster the local currency in the face of strong inflationary pressures and thereby ensuring macroeconomic stability. The Congolese franc has lost more than 20% of its value compared to the dollar since the beginning of the year. Meanwhile, the government announced last month it would cut down its cash expenditures and promote the payment of taxes in francs rather than US dollars, aiming to put a halt to the depreciation of the franc.