2023-07-23 21:30:51
The weakness of the national currency has always been caused by the budget deficit and the shortage of foreign exchange. As the economy is extroverted, there is a mechanical link between the depreciation of the national currency and the rate of inflation. The country lives on imports that must be paid for in foreign currency. Apart from the mines, almost nothing is produced locally.
Gaston Mutamba Permission
Since the beginning of the year, the Congolese franc has been losing value. The Yankee dollar which was trading against 2,000 francs in January climbed to reach 2,700 francs to fall back to 2,450 after the sale of currencies by the Central Bank of Congo. The national currency is yo-yoing, which is not good for business. The people fear that the dollar will soon reach the psychological threshold of 3,000 francs. Stupor and tremors! For those who do not know, when it was launched on June 30, 1998, 1 dollar was exchanged for only 1.3 francs. Hell and damnation! Since then, everyone lives at the daily rate. In principle the dog is wagging its tail, but here it is rather the tail or exchange rate that is wagging the dog or national economy. A real evil!
This is reminiscent of Jean de La Fontaine’s fable titled “Animals sick with the plague”: An evil that spreads terror, Evil that Heaven in its fury Invented to punish the crimes of the earth, The Plague (since it must be called by its name). Capable of enriching Acheron in a day, Made war on the animals. They didn’t all die, but all were stricken. Anyway next!
The weakness of the national currency has always been caused by the budget deficit and the shortage of foreign exchange. According to my friend who knows what is happening in every nook and corner of Kinshasa the dilapidated, the dollar plays a central role in the socio-economic life of our country coveted by all neighboring countries and China. Everyone counts and dreams in dollars. Everyone needs the dollar to buy a house, to pay for restaurant and hotel expenses, store items, dowry, medical expenses, funerals, television, rent, driver, servant, plane tickets, school fees, communication credits, etc. It is only natural that their prices increase when the franc depreciates. It’s a sort of invisible tax that hits everyone indiscriminately. Saperlipopette! As soon as the dollar appreciates against the franc, prices automatically readjust upwards. According to my know-it-all friend, as the economy is extroverted, there is a mechanical link between the depreciation of the national currency and the rate of inflation. The country lives on imports that must be paid for in foreign currency. Apart from the mines, almost nothing is produced locally. This is the paradox of the Dutch syndrome. As my friend who went crazy says, it’s a country where everyone pretends. Employees pretend to work and employers pretend to pay them. Hell and damnation!
To stabilize the exchange rate, the government decided on Monday July 17 that no more payments from the Treasury will be made at the counters of the Central Bank, that from now on payments of taxes and suppliers will be made in francs, tutti quanti. It is the hospital that does not care about charity! An influx of Congolese francs on the market always leads to a strong demand for dollars. All you need is good financial programming and budgetary discipline.
Hey, the Central Bank of Congo is no longer independent in the conduct of monetary policy! As if all this were not enough, here is Gentiny Ngobila, the governor of the city, on the warpath. After having scalped Godé Mpoy, former president of the Provincial Assembly, it is the turn of Gérard Mulumba dit Gecoco, vice-governor, to become an expiatory victim. Bis repeat! He also had the nerve to question the management and health of the city of Kinshasa or what remains of it. Before him, former vice-governor Néron Mbungu was “electrocuted” and dismissed in April 2021 for the same questions. Fear adds to fear. Hell and damnation!
It is said at home that lying is like sand: it is soft when you lie down in it, but hard when you get up.
GML
Happy
0
0 %
Sad
0
0 %
Excited
0
0 %
Sleepy
0
0 %
Angry
0
0 %
Surprise
0
0 %
#Congolese #franc #unstable #Congo #Indépendant