The Central Bank of Congo (BCC), has taken a decisive step to strengthen the Congolese franc (CDF) by easing its monetary policy during a Monetary Policy Committee (CPM) meeting held on October 7, 2025.
The BCC reduced its benchmark interest rate from 25% to 17.5% and lowered the marginal lending facility rate from 30% to 21.5%.
This marks the largest policy adjustment since 2021 and is intended to curb the country’s heavy dependence on the U.S. dollar, with more than 90% of transactions in the Democratic Republic of Congo still denominated in dollars, Tech in Africa reported.
The policy shift comes amid an improved macroeconomic outlook, highlighted by a decline in inflation from 15.1% in September 2024 to 7.8% by September 2025, and an 11.6% appreciation of the CDF against the dollar.
These developments are largely credited to coordinated measures, including the injection of foreign currency into the interbank market and changes to reserve requirements for dollar deposits.
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The BCC is urging businesses and households to transact more in the local currency to reduce the economy’s exposure to external shocks, such as potential restrictions on U.S. banknotes.
By cutting interest rates, the central bank aims to make financing more affordable for banks, businesses, and the government. However, the ultimate impact will depend on how effectively the banking system can expand local currency liquidity and restore public confidence in the CDF.
The Congolese government has also reaffirmed its commitment to collecting taxes in CDF, a move expected to drive higher demand for the local currency.
Still, the success of these efforts will rely heavily on maintaining strict fiscal discipline, reinforcing the banking sector, and rebuilding trust in the Congolese franc.
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Image Credit: The Cable
