TITLE:
Prospects for a New Monetary Reform in the Democratic Republic of Congo: Structural De-Dollarization and the Creation of the Sovereign Savings Account in Congolese Francs (SSA-CDF)
AUTHORS:
Mananga Ngoma Buveka Ariel, Phambu Masanga Ntedika Romain, Mabi Lukusa Christian
KEYWORDS:
Financial Dollarization, Congolese Franc, Central Bank of Congo, Monetary Sovereignty, National Savings, Sovereign Savings Account, Monetary Policy, Banking Intermediation.
JOURNAL NAME:
Modern Economy,
Vol.17 No.10,
October
27,
2026
ABSTRACT: The economy of the Democratic Republic of Congo (DRC) is characterized by an excessive degree of financial dollarization, with nearly 88.52% of bank deposits denominated in foreign currency (as of August 2026). This currency hypertrophy weakens monetary transmission mechanisms, renders the banking system vulnerable to exchange rate risk, and deprives the state of effective monetary sovereignty. This paper proposes an innovative monetary reform focused on reclaiming the store-of-value function of the Congolese Franc (CDF) through the establishment of the “Sovereign Savings Account in Congolese Francs” (SSA-CDF). Far from being a mere commercial designation or an administrative coercive measure, the SSA-CDF is designed as a standardized institutional instrument offering a positive real return, staggered maturities (6 to 60 months), and a reinforced prudential framework under the supervision of the Central Bank of Congo (BCC). Through a theoretical model of money demand, a rigorous quantitative diagnosis of the Congolese banking balance sheet, and simulations of de-dollarization trajectories, the study demonstrates that a gradual financial incentive strategy can increase the share of CDF deposits from 11.48% to 40%, thereby mobilizing over 13,284 billion CDF in stable savings. However, the success of this reform requires strict coordination between fiscal discipline, price stability, and productive financial intermediation.