International reserves increased by 25.39% ($ 228.8 million) between January 31 and May 6, 2019. They increased from $ 901.2 million to $ 1.13 billion over the period indicated. This is apparent from the analysis of the figures released by the Monetary Policy Committee which held its fourth regular meeting on 16 May 2019 at the Central Bank of Congo.
Indeed, the official communiqué issued after this meeting says that foreign exchange reserves exceeded the $ 1.1 billion mark at the end of April 2019 and amount to 1.13 billion US dollars as of May 6, 2019 This level corresponds to 4 weeks and 3 days of importing goods and services from the State’s own resources.

DRC: foreign exchange reserves increase by 25% between the end of January and 6 May 2019 2
This upward trend in foreign exchange reserves demonstrates an encouraging performance in capturing foreign exchange for the export of goods, particularly natural resources, including mining products.

But for economists, this level of DRC’s international reserves still remains well below that demanded by the International Monetary Fund (IMF) standard, which is at least three months of import, or 12 weeks.

In order to comply with this requirement, President Félix Antoine Tshisekedi and his future government should roll up their sleeves to meet the challenge of exceeding US $ 4.52 billion in international reserves.

As a reminder, foreign exchange reserves were valued at $ 901.2 million at the end of March 2019, while they stood at $ 969.91 million as at February 28 of the same year, corresponding respectively to 3 weeks of imports. goods and services from the government’s own resources.

By definition, foreign exchange reserves are holdings of foreign currency and gold held by a central bank. They generally take the form of bonds and bonds of the Treasury of foreign states, which allows these reserves to earn interest. They are used by the monetary authorities to regulate exchange rates.

In the DRC, history tells us that these reserves have really served their usefulness at critical moments. So many governments have resorted to them to finance in particular certain State expenditures that hurt the country’s economy.

Eric TSHIKUMA