Grace Ashiru
The Central Bank of Congo (BCC) has made a significant move to strengthen the Congolese franc (CDF) by easing its monetary policy during a Monetary Policy Committee (CPM) meeting on October 7, 2025. The BCC reduced the benchmark interest rate from 25% to 17.5%, and lowered the marginal lending facility rate from 30% to 21.5%. This decision, the largest adjustment since 2021, aims to reduce the economy’s reliance on U.S. dollars, as over 90% of payments in the country are still dollar-denominated.
This policy shift follows improvements in the macroeconomic environment, including a reduction in inflation from 15.1% in September 2024 to 7.8% by September 2025, along with an 11.6% appreciation of the CDF against the dollar. These gains are attributed to coordinated actions, such as the injection of foreign currency into the interbank market and adjustments in reserve requirements for dollar deposits.
The BCC is encouraging businesses and households to use the local currency for transactions, in an effort to reduce the economy’s vulnerability to external economic pressures, such as potential restrictions on U.S. banknotes. By lowering interest rates, the central bank hopes to make financing cheaper for banks, businesses, and the government, but the true effectiveness will depend on the banking system’s ability to increase local currency liquidity and rebuild confidence in the CDF.
The Congolese government has also pledged to continue collecting taxes in CDF, which is expected to stimulate greater demand for the currency. However, the success of this policy will hinge on strict fiscal discipline, a stronger banking system, and the rebuilding of public trust in the CDF.
