TITLE:
The Political Economy of Monetary Reforms in the DRC (1964-1998): Macroeconomic Imbalances, Dollarization, and the Role of the Central Bank in the Democratic Republic of the Congo
AUTHORS:
Mananga Ngoma Buveka Ariel, Phambu Masanga Ntedika Romain, Mabi Lukusa Christian
KEYWORDS:
Financial Dollarization, Congolese Franc, Central Bank of the Congo, Monetary Sovereignty, National Savings, Sovereign Savings Account, Monetary Policy, Banking Intermediation
JOURNAL NAME:
Modern Economy,
Vol.17 No.10,
October
23,
2026
ABSTRACT: This article examines the historical trajectory and effectiveness of monetary reforms in the Democratic Republic of the Congo (DRC) through the pivotal milestones of 1964, 1967, 1993, and 1998. Drawing on the theoretical frameworks of monetarism, keynesianism, and the impossible trinity, the study demonstrates that a mere change in monetary unit or nominal fiduciary adjustment cannot compensate for the lack of deep structural reforms. The empirical analysis highlights the mechanisms through which chronic budget deficits financed by money creation, political instability, and de facto dollarization have eroded the credibility of the national currency. The study concludes that the sustainable restoration of monetary sovereignty by the Central Bank of Congo (BCC) requires strict fiscal discipline, operational independence of the monetary authority, the accumulation of international reserves, and the diversification of the productive fabric.