Jean-Claude Masangu Mulongo, the former governor of the National Bank of Congo (BCC), has reflected on his tenure, highlighting the introduction of the Congolese franc as one of the most difficult decisions he made during his 16 years at the helm. In a live Space discussion organized by Stanis Bujakera Tshiamala on October 6, Masangu emphasized that the launch of the new currency required a comprehensive monetary reform. This involved a series of coordinated measures aimed at ensuring the banking and financial system was sound and that the population would accept the new currency.
Masangu stressed that the reform was undertaken independently by the Congolese, without assistance from the International Monetary Fund (IMF). A technical cell was established within the BCC, comprising senior bank officials and two former deputy governors chosen for their experience in past reforms. The team studied the reasons behind the success of the 1967 reform and the failure of the Birindwa reform, named after former Prime Minister Faustin Birindwa. Masangu described the team as "very, very solid," indicating a high level of expertise and dedication.
The introduction of the Congolese franc involved replacing the new zaïre, and Masangu credited the Association of Women of the National Bank of Congo (AFEBACO) for their significant role in popularizing the reform. Members of AFEBACO conducted outreach efforts, explaining the changes to women in markets and other community members. This grassroots approach facilitated the acceptance of the new currency, making the transition smoother than anticipated. The BCC allowed a two-year period for exchanging the old currency, ensuring that everyone had sufficient time to adapt.
Masangu's decision to introduce the Congolese franc was part of a broader effort to restore the banking system, which he described as a significant challenge. The reform aimed to create a stable financial environment, essential for the country's economic development. By introducing a national currency, the government sought to assert its control over monetary policy and reduce dependence on external factors.
The process of introducing the Congolese franc was meticulous, with the BCC taking steps to ensure a seamless transition. This included allowing a reasonable timeframe for the exchange of currencies and engaging with the public to build trust in the new currency. Masangu's leadership during this period was crucial in navigating the complexities of monetary reform.
In addition to discussing the introduction of the Congolese franc, Masangu touched on other aspects of his tenure at the BCC, including the independence of the bank. He noted that under Laurent-Désiré Kabila, the bank lacked independence, while under Joseph Kabila, it had a degree of autonomy. Masangu emphasized that the bank is now completely independent, which is essential for effective monetary policy.
Masangu's reflections on his time at the BCC provide valuable insights into the challenges and successes of economic reforms in the Democratic Republic of the Congo. His experience in introducing the Congolese franc serves as a significant example of the complexities involved in monetary policy and the importance of national ownership in such reforms.
Key points
- Jean-Claude Masangu introduced the Congolese franc without IMF assistance.
- The reform involved a comprehensive monetary policy overhaul.
- The Association of Women of the National Bank of Congo played a crucial role in popularizing the new currency.
