DRC: Toward the End of Rent Payments in Dollars, Parliament Wants to Impose the Congolese Franc
The reform of the rental market is taking a new step in the Democratic Republic of Congo. A bill adopted in first reading by the National Assembly and transmitted to the Senate provides for making the payment of non-professional rents in Congolese francs mandatory. The objective is to strengthen the use of the national currency and limit the effects of dollarization on the economy.
Consolidating the Role of the Congolese Franc
Sponsored by national deputy Venance Eyanga Mboyo, this initiative follows the continuity of the 2014 foreign exchange regulation, revised in 2018, which already provided that several transactions, including rents, school fees and healthcare payments, should be carried out in the national currency. According to its author, this provision has remained largely unenforced in practice, hence the need to give it stronger legal force by incorporating it into law.
Reducing Pressure on the Foreign Exchange Market
The reform also aims to reduce the strong demand for foreign currency observed at the end of each month, when many tenants purchase dollars to pay their rent. By requiring payment exclusively in Congolese francs, the authorities hope to limit this pressure on the foreign exchange market and contribute to greater exchange rate stability.
For Venance Eyanga Mboyo, lease contracts will no longer be negotiated in US dollars. Landlords and tenants will now have to conclude their agreements and make payments in the national currency.
A Reform with Major Economic Consequences
If it is definitively adopted by the Senate and then promulgated, this law will change practices in the Congolese real estate sector, where the US dollar remains widely used. Its implementation will, however, require control mechanisms and awareness-raising among stakeholders to ensure its effective application.
This reform is part of the gradual dedollarization policy undertaken by the Congolese authorities, who are seeking to strengthen the credibility of the Congolese franc as the main currency for transactions across the national territory.
MB – Actualite.cd
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