The Democratic Republic of the Congo plans to begin accumulating gold reserves to reinforce its national currency and boost economic stability, Central Bank Governor André Wameso said, as gold prices surge to unprecedented levels.
Gold hit a record high above $4,000 an ounce on Wednesday—up more than 50% since the start of the year—driven largely by strong global demand from central banks. Wameso said the initiative will align Congo with a growing number of African nations increasing gold holdings amid global economic uncertainty.
“Among the first decisions I took was to constitute gold reserves for the central bank alongside the main hard currency, which is the dollar,” Wameso told Reuters in an interview.
Although Congo is Africa’s tenth-largest gold producer, with output exceeding 40 metric tons last year, the country has not previously maintained gold reserves. Much of its artisanal production is smuggled through neighboring countries and, according to Wameso, often finances armed conflicts in the mineral-rich east rather than benefiting the national economy.
“That gold should become the main driver of our economic development through the financial and monetary solidity of the central bank,” he said, without detailing when purchases would begin or how much gold would be acquired.
Wameso, a former presidential aide appointed central bank governor in July, said the strategy would complement existing foreign exchange reserves held mainly in U.S. dollars. He added that strengthening gold reserves would enhance the international credibility of the Congolese franc and could eventually allow it to be traded more widely.
Several African countries—including Ghana, Tanzania, Nigeria, Rwanda, Burkina Faso, and Namibia—have recently expanded or initiated gold purchases to bolster reserves. Zimbabwe also launched its gold-backed “ZIG” currency in 2024.
The move comes as Congo grapples with mounting fiscal pressure from renewed conflict with M23 rebels in the east, whom Kinshasa accuses Rwanda of supporting—an allegation Kigali denies.
Wameso also signaled potential further cuts to the benchmark lending rate if inflation continues to ease, noting that the central bank has been absorbing excess market liquidity. “If we want to further strengthen our currency and finance the Congolese economy in francs, this key rate will have to be lowered further,” he said.
The International Monetary Fund, which maintains a lending program with Congo, has urged the government to build stronger reserves and meet deficit targets. Wameso said recent gains in the local currency will help the central bank rebuild its dollar holdings more efficiently.
“Banks are now seeking francs, and we have them,” he said. “That allows us to rebuild our dollar reserves by buying them at better rates on the market.”
Source:Africa Publicity
