Since February, the Democratic Republic of Congo’s currency, the franc; has slid severally after years of a remarkable stability of around 920-930 CFA to the US dollar.
Some currency dealers in the street of Lukusa, in the north of the capital Kinshasa, said the decline began in late 2015.
Some financial institutions exchange a dollar for 977 Congolese francs while other business people exchange at the rate of 980 francs for a dollar.
It makes us very bad in this time because when you fix the dollar at a rate of 9.990 Francs, you cannot find a buyer on the market.
“It leaves us in a bad state state this time because when you pick the dollar at a rate of 9.990 Francs, you cannot find a buyer on the market, between time, inflation continues and this disrupts us enormously,” said currency dealer, Guyjou Movangu.
Democratic Republic of the Congo: DRC Political Economy Analysis Experts – https://t.co/hmik7R3pzp— Emploi Rep Dem Congo (@emploirepcongo) January 21, 2016
Traders in the large market of Kinshasa,complained that the decline of the franc is drastically affecting the prices of food stuffs.
A female trader José Misenga said over the last three weeks since she has noticed a high increase in the prices of food stuffs as a result of the exchange rate with the dollar.
A male trader Tshamala Kasong complained that vegetables sold for 300 francs, today cost 500 francs.
“These vegetables, really? Even if we talk of inflation, do we need to buy these vegetables in dollars?” he asked.
At the wholesaler market, a bag of cabbage cost 25,000 to 55,000 Congolese francs” while the cabbage is sold for 500 francs as a retail price.
Despite the country’s impressive economic growth rate and a reduction in the poverty rate from 71 percent in 2005 to 63 percent in 2012, poverty rate remains high in the DR Congo.
The country is among the poorest countries in the world and has ranked 176 out of 187 countries on the human development in 2015.