Kinshasa, September 22rd, 2021 (CPA). The foreign exchange reserves of the Democratic Republic of the Congo (DRC) increase from 708.89 million USD in 2020, against 3.356.76 billion USD in the current month of September 2021, by increasing the coverage of goods and services to 3 (three) months , indicates a statement from the Central Bank of Congo (BCC) received Wednesday at the CPA.
The press release points out that several factors are at the origin of this development, namely the usual operations carried out by the BCC in the market, buying foreign currency and buying back tax revenues in foreign currency; the receipt of financing from the International Monetary Fund (IMF) under the Extended Credit Facility (ECF), relating to the implementation of the government’s economic program.
It is also the collection of the allocation of special drawing rights (SDR) from the IMF, equivalent to 1.5 billion USD as of September 17, 2021. The same source specifies that this collection follows the decision of the G -20, through the IMF Executive Board, to increase SDR allocations, in the context of combating the adverse effects of the covid-19 pandemic, for all member countries of the IMF.
Said collection, continues the source, helped strengthen foreign exchange reserves, which were already in an upward trend since April 2021, as shown in the reserves chart, reaching 1.7785.38 million USD on August 27, 2021, a few days before. the disbursement of the SDR allocation in favor of the DRC.
Foreign exchange reserves support the economic resilience of a country as it helps to respond to a shock against the national currency. These reserves cover a maximum of 3 (three) months of imports of goods and services, it is specified.