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DRC Central Bank Intervenes to Stabilize Currency
11 Jan
Summary
- Central bank plans ongoing foreign exchange market interventions.
- The bank sold $50 million to curb speculative behavior.
- Sufficient reserves give the bank sustained intervention capacity.
The central bank of the Democratic Republic of Congo has signaled its commitment to actively manage the foreign exchange market. It intends to continue intervening to counter speculative activities that have recently caused tensions in the parallel market segment.
These interventions are driven by a desire to curb negative expectations among economic operators. As a demonstration of its resolve, the bank confirmed selling $50 million to commercial lenders on January 8th and plans another sale imminently on Monday.
The Kinshasa-based institution emphasized its robust financial position. It stated that the current level of its reserves grants it a strong and sustained capacity to effectively intervene in the foreign-exchange market, ensuring stability.
