Foreign exchange transactions in the Democratic Republic of the Congo (DRC), where Congolese francs are primarily exchanged for US dollars, are on the rise, with commercial banks taking on a larger role. 

By the end of August 2024, the DRC’s central bank reported $8.62 billion in transactions, with an impressive 93.9% conducted by banks. In 2023, these institutions managed 92.7% of the $10.3 billion in foreign exchange transactions.

The main source of foreign currency for these banks is the US dollar, enabling them to offer exchange rates that closely align with the international market while maintaining lower margins. Additionally, they have successfully narrowed the gap between buying and selling currency costs. As a result, it has become more advantageous to conduct foreign exchange transactions through banks rather than bureaux de change, which are experiencing a decline. In 2023, exchange bureaux processed $7.7 million in transactions, but this figure plummeted to just $2.28 million in 2024, according to the central bank.

In the DRC, exchange bureaux are categorized into three types: national operators, provincial ones, and individual dealers. The latter group has been particularly hard hit by new regulations requiring Central Bank authorization—something many Congolese lack due to missing documents like national identity cards.

It's important to note that the Central Bank's figures only reflect officially reported data. Given the large informal economy in the DRC, some unregulated currency traders likely continue to operate. However, commercial banks have proven effective in this sector.

This year, Congolese authorities announced measures to reduce dollar usage in the economy, but the current monetary system complicates this transition. As of August 2024, over 49% of Congolese franc bills in circulation were in denominations of 20,000 and 10,000 francs, limiting access for individuals whose goods or services are priced below these amounts.

Consequently, lowering inflation to sustain purchasing power for low-income households remains a challenge, while speculation on the dollar continues to be strong. A decade ago, CDF900 bought $1.

George Auréole Bamba