Following the CDF shortage described in my previous article, the USD has continued to lose value (-0.7%) against the
local currency. According to Ali Nasser, trader in an international bank
operating in Kinshasa, the commercial banks had to purchase CDF from the
Central Bank in order to find the necessary Congolese francs to pay their
customers taxes.
As stated in my last article, the Congolese economy
is highly dollarized and the principal reason companies keep/seek CDF is to pay
taxes which cannot be paid in foreign currency. Commercial banks unable to sell
USD to the Central Bank to pay for these taxes because of their exchange position (square or too short) had to borrow money (from the same
Central Bank between 32.5 and 48%).
Source: Banque Centrale du Congo
On the
inflation side, the Consumer Price Index has increased by 0.27% in a week
leading to a year-on-year inflation of 18.68%. If this trend remains stable until
the end of the year, the annual inflation rate should reach 26.43%.
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