The Democratic Republic of Congo (DRC) has been using the US dollar as its national currency for about seven years now. This policy was put in place to counteract galloping inflation. Having stabilized the economy and and wanting to stand on its own feet, the leaders of the country are now introducing the Congo Franc as their new currency.
It is in fact needful that the DRC stands on its own feet but the currency issue it is trying to fix is probably the least of its problems. Not that this issue should not be fixed; it should. The basic problem with the DRC is that it is currently viewed as a place that is not safe for investment. Only the very daring and those who want to profit from the loots that emanate from its chaotic economy struggle to invest there. That country would be a paradise if the empty spaces in which rebels roam free and brutalise ordinary people, especially the rape of women, are made secure. Vast areas of the country have been abandoned by the government to rebels and the infamous Joseph Kony from Uganda. Changing the currency of the country would do very little to render confidence in a place where the people live in fear for their lives and sometimes depend on the UN peacekeeping force (which often does not show up) to protect them. It is good to change the currency but that should be the least of the worries of the government. The government should be focused on how to bring about lasting peace in a region that has been brutalized by so many for so long.
2 comments:
Although there are many things the DRC could be doing to help further stabilize the country, it could be said that the currency independence is a platform for the rest? Probably not. Currency is unstable, especially in a developing nation. The chances that the new franc will not meet expectations are high; furthermore, without FDI, there is no reason to change to a national currency from a moderately stable US dollar. If people live in fear of investing their money due to the uncertainty of the economic future in the DRC, currency should not even be on the front burner, but the real issue(security, stable markets) should be tackled first with prosperity coming second. One cannot thrive without surviving first.
In a similar way, Zimbabwe has adopted the US dollar as the country's official currency in an effort to stop to the billowing inflation. The political situations are somewhat different in both countries but the basic needs of the people are the same- one of those needs being the ability to purchase needed goods with the money they rightfully earned through work. Perhaps using the US dollar is not fundamentally helping the situation in either the DRC or Zimbabwe, but it is allowing the people of both countries to have what little control over their lives that they can by earning and spending money that at least has some value.
Post a Comment