Tables of Modern Monetary Systems by Kurt Schuler ( Return to home page )


Congo-Kinshasa (Democratic Republic of Congo)

Political sketch

Formerly the Congo Free State, Independent State of the Congo, Belgian Congo, Republic of the Congo, and Zaïre; also known as Congo-Léopoldville and later Congo-Kinshasa, after its capital city, to distinguish it from its neighbor Congo-Brazzaville. Independent from Belgium on 30 June 1960.

In the late 1800s, King Leopold II of Belgium financed exploration of the Congo River by the U.S. journalist and explorer Henry Morton Stanley from 1874 to 1877. The Treaty of Berlin (26 February 1885), resulting from the Berlin West Africa Conference of European powers, recognized Leopold as sovereign of the Congo Free State, also known as the Independent State of the Congo. Belgian troops achieved dominance of the area's many tribes with little resistance. Exploitation of the Congolese as forced laborers on rubber plantations and in mines caused millions of deaths. Eventually European outrage at the condition of the Congolese peoples forced Leopold to convert the Congo Free State from a personal possession into a Belgian colony (Belgian Congo) in late 1908. During the First World War, the country was a staging ground for a Belgian invasion of the neighboring German colonies of Ruanda-Urundi and Tanganyika (now Rwanda, Burundi, and Tanzania). In 1926 the seat of administration was moved from Boma to Kinshasa, which in 1923 had been renamed Léopoldville.

The Congo became independent on 30 June 1960 in the wave of African states around that time. Within two weeks of independence, army and police officers mutinied against president Patrice Lumumba and the Katanga (Shaba) region seceded. The government called in United Nations peacekeeping forces to avert civil war. Lumumba was dismissed as prime minister in September 1960, and in January 1961 was assassinated by a rival faction. United Nations forces left in 1964. On 25 November 1965 General Joseph Mobutu (Mobutu Sese Seko) led a coup and assumed power. The name of the capital, Léopoldville, was changed back to Kinshasa in 1966. By 1967 the Katanga rebellion ended, although Katangese rebels unsuccessfully tried to invade the region from Angola in 1977 and 1978, when Angola was embroiled in a civil war. Mobutu and his government were exceedingly corrupt and contributed to keeping the country quite poor. Mobutu changed the name of the country to Zaïre on 27 October 1971. Multiparty elections occurred in 1991. In 1996, Rwanda's civil war spilled over into Zaïre, which Rwandan Hutu rebel groups used as a base for conducting attacks. In May 1997, Mobutu relinquished control following a rebellion led by Laurent Kabila, who was supported by Rwanda and Uganda. Mobutu went into exile and died in September 1997. Kabila changed the country's name to the Democratic Republic of the Congo. A civil war soon broke out that, involving groups from within the country as well as groups from or the governments of Angola, Burundi, Rwanda, Uganda, and Zimbabwe, many of whom wish to achieve control of the country's copper and diamond mines. On 16 January 2001 Laurent Kabila was assassinated; his son Joseph Kabila succeeded him as president. The civil war finally wound down in 2003, having caused more deaths than any war anywhere since the Second World War. Sporadic fighting continued in the eastern part of the country.

Wars since 1500

Batetlan Uprisings, 1895-1900 (against Belgium); First World War in East Africa, 1914-1918 (Germany against United Kingdom, France, Belgium, Portugal); Congolese Civil War of 1960-1968; Shaba (Katanga) Invasion of 1977-1978; Congolese (Zaïrian) Civil War of 1996-1997; Congolese Civil War of 1998-2003.

Convertibility

Belgian colonies:

During the First World War, the German army occupied most of Belgium. The German campaign of submarine warfare cut off shipping between Belgium and its colonies, and from December 1914 to June 1919 the Congolese (Belgian Congo) franc was not convertible into the Belgian franc. The pound sterling became its anchor currency. Convertibility resumed after the war ended and shipping resumed. During the Second World War, the German army occupied all of Belgium in May 1940. Belgian colonies in Africa sided with the Allies, so the Congolese franc ceased to be convertible into the Belgian franc. It was attached to sterling until Belgium was liberated in the second half of 1944.

Belgium introduced exchange controls during the Second World War on 10 May 1940. In Belgian Congo and Ruanda-Urundi (now Congo-Kinshasa, Rwanda, and Burundi), exchange controls were imposed on 10 March 1941 (Banque Nationale du Rwanda annual report 1964/1971: 12). Apparently these were in addition to the controls Belgium had previously imposed. Belgium had a dual exchange rate from 1 April 1955 to 4 March 1990; it abolished all exchange rate controls on 5 March 1990.

Congo-Kinshasa alone:

The treaty of Saint-Germain-en-Laye, confirmed by a Belgian law of 1920, stated that the Belgian Congo could not establish preferential exchange controls with Belgium. The treaty was an extension of previous international agreements whereby Belgium had promised freedom of trade on the River Congo in exchange for recognition of Belgium's claims to the territory.

On 29 March 1960, the Banque Centrale du Congo Belge et du Ruanda-Urundi imposed exchange controls with respect to the Belgian franc and other currencies (Banque Centrale du Congo Belge et du Ruanda-Urundi bulletin, March 1960: 118). Apparently it did so to stem capital flight ahead of the granting of Congolese independence.

A major loosening of echange controls occurred on 27 December 1996.

Other

Defaults on or restructurings of debt to the private sector (mainly from Purcell and Kaufman 1993 and Standard & Poor's 2004): 1961 (default following independence); 1976-2004 (foreign currency bank debt, as a result of budget crisis plus copper, oil, and interest rate shocks) 1079 (local currency debt) .

Banking crises (data since 1970s mainly from Caprio and Klingebiel 1999 and Frydl 1999): 1980s, 1991-1992, 1994-present?

Frankel and Rose (1996) list of currency crashes: 1976, 1983, 1987, 1991.

The charter of the Banque du Congo Belge specified under what conditions a rival note-issuing bank might obtain a charter, but in practice, no such bank was ever established.

The two provinces of Kasaï, which at the time were not under the control of the central government in Kinshasa, rejected the use of notes newly printed by central government during the monetary reform of October 1993. They continued to use old currency, which the Kinshasa government demonetized in the areas under its control. Consequently, they avoided the hyperinflation that afflicted the areas under the control of the Kinshasa government, though Katanga in particular did suffer some inflation. At the start of 1997, the Banque Centrale du Congo issued new notes of 100,000, 500,000, and 1 million new zaïres. Most of the population rejected the new notes. In the areas under the control of the central government, they only found widespread accepted in Katanga province, where the largest company, the Gecamines mining concern, paid its workers with the notes. As a result of public distrust of the new notes , the government demonetized them in April 1997 and issued a new design of the 100,000 new zaïres note. This note was accepted in Kinshasa and Lower Congo, the only provinces by that time that were under the control of the central government. In effect, the country was divided into four currency areas. There were corresponding variations in the exchange rate with the US dollar, which varied from 150,000 new zaïres = US$1 in Kinshasa to 450,000 new zaïres = US$1 in Lubumbashi. The central bank demonetized notes of 500,000 and 1 million new zaïres, which circulated on ly in Katanga. The orange 100,000 new zaïres note was remonetized and accepted in all provinces. Zaïres circulating in the two Kasaï provinces were also remonetized. (Banque Centrale du Congo annual report 1997: 165-7).

References

Primary sources:

--Laws and decrees:

Belgian Congo (Congo Free State). 1885-1960. Bulletin officiel de l'État indépendant du Congo (1885-1908); Bulletin officiel du Congo belge (1908-1960). Brussels (1885-1908); Léopoldville (1908-1960). (Also in Dutch. Succeeded by Congo-Kinshasa gazette.)

Congo-Kinshasa. Gazette. 1960-present. Moniteur congolais (1960-1972); Journal officiel de la République du Zaïre(1972-1997); Journal officiel de la République démocratique du Congo (1997-present). Léopoldville/Kinshasa (name changed 1966): Service du Journal Officiel (1972-1997); Imprimerie CEDI (1997-present). (Successor to Belgian Congo gazette.)

--Publications of monetary authorities:

Banque Centrale du Congo. 1996-present. Annual report. Rapport annuel. Kinshasa: Banque Centrale du Congo.

Banque Centrale du Congo. 2000?-present? Bulletin. Bulletin mensuel des statistiques. Kinshasa: Banque Centrale du Congo. (The central bank's Web site shows only issues from 2000 and 2001.)

Banque du Congo Belge. Annual report. 1909-1959. Bilan et compte de profits et pertes au 30 juin ... ; rapport du Conseil d'Administration et du Collège des Commissaires présentés à l'Assemblée Générale du ... (1909?-1947); Bilan et compte de profits et pertes au 31 décembre ...; rapport du Conseil d'Administration et du Collège des Commissaires présentés à l'Assemblée Générale du ... (1947-1952); Rapports présentées à l'assemblée générale des actionnaires du ...; bilan et compte de profits et pertes au 31 décenbre ... (1952-1959?); English translation (1954?-1959) Report for the Year Ended 31^st December ... Presented to the General Meeting of Shareholders on .... Brussels: Banque du Congo Belge. (The annual report in French is also in Dutch.)

Banque du Congo Belge. Bulletin. 1946-1960. Bulletin mensuel de la Banque du Congo belge (1946-1947); Bulletin d'informations générales et revue des marchés de la Banque du Congo belge (1948-1953); Bulletin mensuel de la Banque du Congo belge (1954-1960). Brussels: Banque du Congo Belge.

Banque Centrale du Congo Belge et du Ruanda-Urundi. Annual report. 1952/1953-1960? Assemblée Générale des Actionnaires deu ...; rapport sur les opérations de l'exercise social présenté par le Gouverneur au nom du Comité de direction; rapport du Collège des Censueurs. Brussels: Banque Centrale du Congo Belge et du Ruanda-Urundi.

Banque Centrale du Congo Belge et du Ruanda-Urundi. Bulletin. 1952-1960. Bulletin de la Banque Centrale du Congo Belge et du Ruanda-Urundi (1952-1960); Congo et Ruanda-Urundi: bulletin de la Banque Centrale (1960-1960). Brussels: Banque Centrale du Congo Belge et du Ruanda-Urundi.

Banque du Zaïre. 1972/1973-1995? Annual report. Rapport annuel. Kinshasa: Banque du Zaïre. (I have only seen this publication to 1989.)

Banque du Zaïre. 1971-? Bulletin. Bulletin trimestriel. Kinshasa: Banque du Zaïre.

Banque Nationale du Congo. 1967-1971/1972. Annual report. Rapport annuel. Kinshasa: Banque Nationale du Congo.

Banque Nationale du Congo. 1964-1971. Bulletin. Bulletin trimestrial. Kinshasa: Banque Nationale du Congo.

Conseil Monétaire du Congo. Annual report. (It is unclear whether the organizaton ever published an annual report.)

Conseil Monétaire du Congo. Bulletin. 1962-1964. Bulletin mensuel. Léopoldville: Conseil Monétaire du Congo. (The organization may also be listed as Conseil Monétaire: Institut d'Émission.)

--Web site of the current monetary authority (viewed 20 September 2005):

<http://www.bcc.cd/go.html>; as of December 2005 the site lacked links to the central bank's annual reports.

--Other publications or Web sites:

IMF. International Monetary Fund. 1946-1971 (irregular). Schedule of Par Values. Washington: International Monetary Fund.

Main secondary sources:

Banque du Congo Belge. 1959. Banque du Congo Belge, 1909-1959. Brussels: L. Cuypers.

Banque Nationale du Rwanda. Undated (viewed August 2002). "Aperçu de l'histoire monétaire du Rwanda." Banque National du Rwanda Web site, <http://www.bnr.rw/bnrnet/>.

BCEAO. 1966. Banque Centrale des États de l'Afrique de l'Ouest. Notes d'information et statistiques, issue "L'Afrique des monnaies," January 1966. Paris: Banque Centrale des États de l'Afrique de l'Ouest.

Dupriez, Charles. 1949. Monnaies et essais monétaires du royaume de Belgique et du Congo belge. Brussels, Dépositaire: B. Franceschi.

Henry, J[ames] A., and H. A. Siepmann. 1963. The First Hundred Years of the Standard Bank. London: Oxford University Press. (The Standard Bank operated widely in Africa, including a branch in what is now Congo-Kinshasa.)

IMF ARER. 1950-present. International Monetary Fund. Annual Report on Exchange Restrictions (1950-1978), Annual Report on Exchange Arrangements and Exchange Restrictions (1979-1988), Exchange Arrangements and Exchange Restrictions: Annual Report (1989-present). Washington: International Monetary Fund. (Contains information on IMF member countries and some of their dependencies.)

Kuyena, Dindembolo-Zaya J. R. 1984. The Financial System of Zaire. Atelier des Thèses no. 9. Louvain-la-Neuve, Belgium: Cabaye.

Leclercq, Hugues. 1998. "Du Congo au Zaïre, un siècle d'histoire monétaire." In Comité pour l'Histoire Économique et Financière de la France, La France et l'outre-mer: un siècle de relations monétaires et financières: 577-97. Ministère de l'Économie, des Finances et de l'Industrie. Paris: Imprimerie Nationale.

Pick's Currency Yearbook. 1955-1977/79. New York: Pick Publishing. Succeeded by Pick's World Currency Report and later World Currency Yearbook.

Simonis, Raymond. 1981. "Une banque centrale éphémère: la Banque du Congo Belge et du Ruanda-Urundi, 1951-1961."Revue de la banque, v. (cahier) 15, November: 5-61. Brussels: Centre d'Études Financières.

Symes, Peter [J]. 1998. The Bank Notes of Katanga. Canberra: P. J. Symes. (I have not seen this.)

Wertz, J. 1950. "Quelques aspects de l'organisation financière du Congo Belge et du Ruanda-Urundi." In Encyclopédie du Congo Belge, tome III. Brussels: Éditions Bieleveld. (The first volume of the encyclopedia was published 1950. This volume was published in the mid 1950s, but has no date.)

Monetary authorities: Congo-Kinshasa

Dates	Type	Name	Source	Remarks
1896 -October 1912	government issue	État Indépendent du Congo (Congo Free State) (headquarters Boma, Belgian Congo [now Congo-Kinshasa])	Belgium, royal decree of 7 February 1896, cited in Wertz (1950: 576)	Note issue began on this date; the Congo Free State had issued its own coins starting in 1887 (Belgium, royal decree of 27 July 1997, cited in Wertz 1950: 576). The Congo Free State was in effect the personal property of the Belgian monarchy. The first bank was the Banque du Congo Belge (headquarters Brussels, Belgium), which established a branch in Matadi on 1 June 1909 (Banque du Congo Belge 1959: 69). On the bank's history, see below. The second bank was the Standard Bank of South Africa (headquarters London, England), in Élisabethville (now Lubumbashi), from 1911-1912 (Henry and Siepmann 1963: 162). The Banque Commerciale du Congo was founded on 10 August 1911. It established its first branch in the Belgian Congo, perhaps in Boma, apparently in 1911. It was founded with the participation of the Banque du Congo Belge to undertake operations forbidden to the Banque du Congo Belge under a new charter of 1911, so it was not really a competitor (Banque du Congo Belge 1959: 88, 195).
October 1912 -30 June 1952	private monopoly issue (as part of a currency union from 1916)	Banque du Congo Belge (headquarters Brussels, Belgium)	Belgium, charter of Banque du Congo Belge, 11 January 1909, reprinted in Banque du Congo Belge (1959: 64-5); agreement between Belgian government and Banque du Congo Belge, 7 July 1911, cited in Banque du Congo Belge (1959: 84); royal decree of 18 July 1911, cited in Wertz (1950: 580); Banque du Congo Belge and government of Belgian Congo, agreement of 10 October 1927, cited in Banque Nationale du Rwanda annual report 1964/1971: 11	After the Congo passed from the personal control of the Belgian monarchy to the Belgian nation, the Banque du Congo Belge was chartered to bring commercial banking to Congo on a wide scale. It was given the right of note issue to help it do so. Belgium, royal arrêté of 14 April 1909, ended the circulation of Congo Free State money effective 1 October 1909 (though a royal arrêté of 30 June 1913 extended the deadline to 1 July 1914 for coins). The colonial Treasury issued coins. The 1911 decree officially appointed the Banque du Congo Belge as the bank of issue for the Congo. In 1917 the bank extended its note issue to Ruanda-Urundi (now Rwanda and Burundi) as a result of Belgian conquests during First World War. The 1927 confirmed the extension of territory and renewed the bank's charter 25 years. The second durable bank was the Banque de Bruxelles (headquarters Brussels, Belgium), in Léopoldville (now Kinshasa) and three other cities, in 1923. These branches were later absorbed into the Banque Belge d'Afrique (headquarters Brussels, Belgium) (Banque Centrale du
1 July 1952 -31 August 1960	joint central bank (as part of a currency union)	Banque Centrale du Congo Belge et du Ruanda-Urundi (headquarters Brussels, Belgium)	Belgium, decree of 30 July 1951; Belgian Congo, Ruanda-Urundi, and Banque du Congo Belge, agreement of 30 June 1952; both cited in Belgium, report on Ruanda-Urundi, 1952: 44	The Banque du Congo Belge lost the right of note issue upon renewal of its charter, as note issue was nationalized in accord with prevailing ideas of the time. The Banque du Congo Belge felt it would be hampered from competing with other commercial banks if it was at the same time supposed to be their central bank. (There is a statement to this effect in an undated letter in English entitled "The Status of the Bank After June 30, 1952," enclosed in the IMF's copy of the 1951 annual report of the Banque du Congo Belge.) The new central bank issued a single design of notes and coins for present-day Congo, Rwanda, and Burundi. It held most of its assets, in some years more than 90%, in the form of gold, curencies other than the Belgian franc, and Belgian francs.
1 September 1960 -21 June 1964	government issue	Conseil Monétaire du Congo (headquarters Léopoldville, Congo-Léopoldville [now Kinshasa, Congo-Kinshasa])	Republic of the Congo, decree of 30 October 1960, cited in Pick's Currency Yearbook(1961: 109); decree-law of 24 February 1961, cited in BCEAO (1966: 4); Conseil Monétaire du Congo bulletin, January 1962: 1	Following independence, the Congo ceased participation in the joint central bank. Government issue, legally ratified slightly after the fact, was an explicitly transitional step. The Congo joined the IMF on 28 September 1963.
22 June 1964 -present (2005)	central bank	Banque Nationale du Congo / Banque du Zaïre from 27 October 1971 / Banque de la République Démocratique du Congo from 17 May 1997 / Banque Centrale du Congo 17 May 1997 (headquarters for all Léopoldville, Congo-Léopoldville [from 1966 Kinshasa, Congo-Kinshasa])	Republic of the Congo, decree-law of 23 February 1961, cited in Banque Nationale du Congo annual report 1967: 223; Ordonnance No. 188, 20 June 1964, cited in central bank Web site, viewed 4 January 2005	The country established its own central bank as an expression of national sentiment. The central bank assumed liability for both notes and coins.

Monetary authorities: Katanga (1960-1963)

Dates	Type	Name	Source	Remarks
10 August 1960 -10 January 1963	central bank (with commercial banking functions)	Banque Nationale du Katanga	Katanga, act of 2 August 1960, cited inPick's Currency Yearbook (1961: 251);Pick's Currency Yearbook (1963: 295)	The breakaway province of Katanga declared independence on 11 July 1960. Its first notes were overprints of notes from the Banque Centrale du Congo Belge et du Ruanda-Urundi that said "Gouvernement Katanga." Specially printed notes did not arrive in the country until December 1960. Katanga issued distinctive coins starting in 1961; before that it used coins issued by the Banque Centrale du Congo Belge et du Ruanda-Urundi. The central bank of Katanga ceased existence when the central government reconquered most of the province.

Exchange rate arrangements: Congo-Kinshasa

Dates	Official arrangement	Source	Unofficial arrangement, if different	Remarks
27 July 1887 -1896	fixed; 1 Congolese franc = 1 Belgian franc = 0.29032258g gold	Belgium, royal decree of 27 July 1887, cited in Wertz (1950: 576)		The Belgian king established the Congolese franc soon after his rule began. The name "franc" for the currency came from the Belgian franc, and like the Belgian franc, the Congolese franc was a decimal currency. Strictly speaking, the Congolese franc was defined as 3,100 Congolese francs = 1 kg of gold, 0.900 fine.
1896 -December 1914	pegged; 1 Congolese franc = 1 Belgian franc = 0.29032258g gold	Belgium, royal decree of 7 February 1896, cited in Wertz (1950: 576)		The Congolese government began issuing notes, so the exchange rate changed from fixed to pegged. By Belgium, colonial charter of the Belgian Congo, 18 October 1908, coins of the Latin Monetary Union became legal tender in Belgian Congo. One might classify this as bimetallism, but I have not since Belgium was on a gold standard and the Congolese monetary system did not seem to be bimetallic in practice.
December 1914 -June 1919	pegged (as part of a currency union from 1916); 25.45 Congolese francs = UKŁ1	Belgium, ordonnance-loi of 19 October 1914, cited in Wertz (1950: 582-3); Anglo-Belgian agreement of late 1914, cited in Banque du Congo Belge (1959: 101)		During the First World War, most of Belgium was overrun by the German army. Convertibility of Congo notes into Belgian francs and gold was suspended (Belgium, ordonnance-loi of 5 August 1914, cited in Wertz 1950: 582) and the Congolese franc was pegged to the pound sterling at the prewar rate. During the war Ruanda-Urundi (now the separate nations of Rwanda and Burundi) joined the Congo in a currency union after being conquered by Belgian forces. (Curiously, by Belgium, arrêté-loi of 15 September 1915, the forced tender of notes of the Banque du Congo Belge did not apply to Katanga province, but in practice it made no difference. The colonial government did not impose forced tender in Katanga until 13 February 1920 [Wertz 1950: 582].)
June 1919 -24 October 1926	pegged (as part of a currency union); 1 Congolese franc = 1 Belgian franc	Belgian Congo, decision of June 1919, cited in Wertz (1950: 583)	In the early months of 1919, the Congolese franc appreciated so that less than 1 Congolese franc was worth 1 Belgian franc (Banque du Congo Belge 1959: 115).	Re-established the link to the Belgian franc after ship communication with Belgium resumed following the end of the First World War. (The first postwar ship from the Congo to Antwerp arrived on 7 Jnauary 1919 [Banque du Congo Belge 1959: 115].) The government of Belgian Congo decided to pay postal orders issued in Belgium at 1 Congolese franc = 1 Belgian franc. Previously, the market rate of exchange between the two currencies had been about 1 Congolese franc = 1.20 Belgian francs.
25 October 1926 -26 July 1935	pegged (as part of a currency union); 1 Congolese franc = 1 Belgian franc = 0.0418422g gold in practice	Belgium, decree of 14 November 1927, cited in Wertz (1950: 584); Wertz (1950: 583)		Returned to the gold standard with Belgium. The Congolese franc was officially given its own new definition in terms of gold by the decree of 1927; before then, the definition was that of the Belgian franc.
27 July 1935 -13 May 1940	pegged (as part of a currency union); 1 Congolese franc = 1 Belgian franc = 0.0301264g gold	Belgium, decree of 27 July 1935, cited in Wertz (1950: 585)		Devalued against gold with Belgium.
14 May 1940 -6 June 1940	pegged (as part of a currency union); 120 Congolese francs = UKŁ1 (implicitly, through Belgian franc), or 0.68 Congolese francs = 1 French franc	Anglo-Belgian-French monetary agreement of 14 May 1940; Belgium, Ordonnance Législative No. 61/Fin.-Dou., 14 May 1940; Ordonnance Législative No. 89/Fin.-Dou., 20 May 1940; all cited in Wertz (1950: 587)		During the Second World War, Belgium was overrun by the German army. This monetary agreement, to which the Belgian government aligned with the Allies was a party, did not explicitly mention the Congolese franc, but the Congolese franc was covered through the Belgian franc zone. The prewar exchange rate was approximately 115 Belgian francs = UKŁ1.
7 June 1940 -20 January 1941	pegged (as part of a currency union); 176.625 Congolese francs = UKŁ1 (implicitly, through Belgian franc), or 1 Congolese franc = 1 French franc	Belgium, ordonnance législative of 30 May 1940, cited in Banque du Congo Belge (1959: 136; see also p. 137); ordonnance législative of 21 June 1940, cited in Banque du Congo Belge bulletin, July-August 1952: 3; Ordonnance Législative No. 179/ Fin.-Dou., 18 July 1940, cited in Wertz (1950: 587)		Devalued with the Belgian franc when the Belgian franc was devalued to reattain its historical rate of 1 Belgian franc = 1 French franc. The ordonnance of 30 May 1940 imposed forced tender of notes of the Banque du Congo Belge and forbade the export of its notes and of foreign coins.
21 January 1941 -4 October 1944	pegged (as part of a currency union); 176.625 Congolese francs = UKŁ1	Anglo-Belgian agreement of 21 January 1941; Belgium, Ordonnance Législative No. 107/Fin.-Dou., 10 March 1941; both cited in Wertz (1950: 587-8)		This agreement formally pegged the Congolese franc directly to the pound sterling, not just indirectly through the Belgian franc. Notes of the Banque du Congo Belge were made forced tender (Belgium, Ordonnance Législative No. 105/Fin.-Dou., 10 March 1941).
5 October 1944 -30 June 1952	pegged (as part of a currency union); 1 Congolese franc = 1 Belgian franc	Anglo-Belgian monetary agreement of 5 October 1944, cited in Wertz (1950: 588)		Returned to the Belgian franc as the anchor currency following the Allied liberation of Belgium during Second World War. On 18 December 1946, Belgium registered a parity with the IMF of 1 Congolese franc = 0.0202765g gold (IMF, 1st Schedule of Par Values, 18 December 1946: 5). (Technically, the parity was 0.02027675g gold, but the IMF only allowed six significant digits [Banque Centrale du Congo Belge et du Ruanda-Urundi bulletin, November 1957: 448]). Belgium changed the rate on 21 September 1949 to 1 Congolese franc = 0.0177734g gold (IMF, 9th Schedule of Par Values, 1 December 1949: 16). (Technically, the latter parity was 0.0177341557g gold.)
1 July 1952 -24 October 1956	pegged (as part of a currency union); 1 Congolese (Congo-Ruanda-Urundi) franc = 1 Belgian franc	Belgium, decree of 30 July 1951, cited in Wertz (1950: 592); Banque Centrale du Congo Belge et du Ruanda-Urundi bulletin, August 1952: 63		The Banque du Congo Belge lost the right of note issue upon renewal of its charter, as note issue was nationalized in accord with prevailing ideas of the time. The new central bank issued a single design of notes and coins for present-day Congo, Rwanda, and Burundi.
25 October 1956 -21 September 1960	pegged (as part of a currency union); 1 Congolese (Congo-Ruanda-Urundi) franc = 0.0177734g gold = 1 Belgian franc	Belgium, decree of 25 October 1956, cited in Banque Centrale du Congo Belge et du Ruanda-Urundi bulletin, November 1957: 451		Belgium defined the Congolese (Congo-Ruanda-Urundi) franc in terms of gold. Previously, there had been Belgian decrees from time to time ordering the Banque Centrale du Congo Belge et du Ruanda-Urundi, to value its gold at the same rate as Belgium's central bank, and to give any profit from revaluation of gold to the government of Belgian Congo. Howver, these decrees did not constitute a definition of the local currency as a weight of gold.
22 September 1960 -5 November 1961	pegged; 1 Congolese franc = 0.0177734g gold = 1 Belgian franc	Pick's Currency Yearbook (1961: 110)	Pick's Currency Yearbook (1961: 112) lists the parallel market premium as generally above 50% from June 1960.	Following independence, the Congo left its currency union with Ruanda-Urundi (now Rwanda and Burundi).
6 November 1961 -8 November 1963	pegged, dual rate; official rate 50 Congolese francs = US$1	Banque Nationale du Congo annual report 1967: 14-15	The second rate was flexible. The Conseil Monétaire du Congo bulletin and Pick's Currency Yearbookfrom this period list the parallel market premium as typically exceeding 100%. RR: Huge parallel market premiums from January 1962, when data start; they are in the millions of percent, which is so large that there appears to be a typographical error.	The dual exchange rate replaced an "indirect" dual exchange rate that had previously existed under Belgian rule because the Belgian franc had had a dual rate. The Congo switched to the US dollar as its anchor currency and allowed 20% of foreign exchange to be sold on the "free" market, where the initial exchange rate was 65 Congolese francs = US$1. (The "free" market rate actually seems to have been somewhat pegged, and according to IMF ARER 1964: 129, the effective rate was actually 64 Congolese francs = US$1. The rate of 65 francs is specified by the central bank.) Francs from breakaway region of Katanga were converted into Congolese francs at 1 Katanga franc = 1 Congolese franc, with no quantity limit (Republic of the Congo, Presidential Ordinance of 9 January 1963, cited in ARER 1964: 128).
9 November 1963 -23 June 1967	pegged, dual rate; 150-180 Congolese francs = US$1	Conseil Monétaire du Congo bulletin, May 1964: v	The central bank lists data for the parallel market starting in 1966 (Banque Nationale du Congo annual report 1968/1969: 201). RR: Huge parallel market premium; typographical error?	Devalued after a civil war involving Katanga province. The official rates listed were the buying and selling rates. The rate was dual because of the large spread between the two.
24 June 1967 -18 June 1968	pegged; 1 Congolese zaïre = US$2 = 1.777432g gold	Republic of the Congo, Ordonnance-loi No. 67/266, 23 June 1967, cited in Banque Nationale du Congo annual report 1968/1969: 198	The central bank lists data for the parallel market (Banque Nationale du Congo annual report 1968/1969: 201). RR: Large parallel market premium.	Introduced a new currency at 1 Congolese zaïre = 1,000 Congolese francs, and unified the exchange rate. "Zaïre" is the local name of the Congo River.
19 June 1968 -15 November 1970	pegged; 1 Congolese zaïre = 100 Belgian francs = 1.777432g gold	Banque Nationale du Congo annual report 1968/1969: 206; IMF ARER (1969: 115)	The central bank lists data for the parallel market ending in November 1969 (Banque Nationale du Congo annual report 1968/1969: 201). RR: Large parallel market premium.	Returned to using the Belgian franc as the intervention currency; the reason is unclear. Congo-Kinshasa registered a gold parity with the IMF on 2 September 1970 (IMF, 50th Schedule of Par Values, 2 September 1970: 2, 14).
16 November 1970 -23 August 1971	pegged; 1 Congolese zaïre = 100 Belgian francs = US$2 = 1.777432g gold	Banque du Zaïre annual report 1970/1971: 316; ARER (1971: 116)	RR: Large parallel market premium.	Switched back to the US dollar as the intervention currency, although the Belgian franc remained the anchor currency. Gold convertibility for all countries ended in practice when the United States abandoned the gold standard on 15 August 1971.
24 August 1971 -26 August 1971	pegged; 1 Congolese zaïre = US$2 = 1.777432g gold (nominally)	Banque du Zaïre annual report 1970/1971: 316	Pick's Currency Yearbook (1976-1977: 660) shows a persistent parallel market premium around this period, though there is a gap in the data.	At the start of this period, the Congo switched from the Belgian franc as the anchor currency.
27 August 1971 -11 March 1976	pegged; 1 Zaïrian zaïre = US$2 = 1.777432g gold (nominally)	IMF ARER (1972: 490)	Pick's Currency Yearbook (1976-1977: 660) shows a persistent parallel market premium. RR: Large parallel market premium following a gap in data early in period.	The name of the country changed to Zaïre, so the name of the currency changed accordingly. Zaïre did not follow the devaluation of the US dollar against gold on 18 December 1971, but neither did it revalue against the US dollar. Zaïre declared a central rate of 1 Zaïrian zaïre = US$2 to the IMF on 21 December 1971, effective 24 December 1971. It adopted wider margins then (IMF ARER 1972: 490).
12 March 1976 -11 February? 1977	pegged to rigid basket; 1 Zaïrian zaïre = 1 SDR = 1.777432g gold (nominally)	Banque du Zaïre annual report 1975: 240; 1976: xvii; IMF ARER (1977: 510)	RR: Large parallel market premium.	Switched to the SDR as the anchor currency and devalued; the cross rate with the SDR prior to the switch had been 1 Zaïrian zaïre = 1.629014 SDR.
12 February? 1977 -31 March 1978	pegged to rigid basket, dual rate; official rate 1 Zaïrian zaïre = 1 SDR = 1.777432g gold (nominally)	possibly Banque du Zaïre, Circular No. 153, 11 February 1977, cited in Banque du Zaïre annual report 1977-1978: 290; IMF ARER (1978: 465)	By 1977 there was a special pegged exchange rate for diamond exports--a form of dual exchange rate. (The first mention of it is IMF ARER 1979: 459, which says that the rate was devalued in January 1978, impling that it began by 1977.) RR: Large parallel market premium.	The IMF does not classify the exchange rate as a dual rate until 1978 (IMF ARER 1979: 457, 470).
1 April 1978 -31 October 1978	pegged to rigid basket, dual rate; official rate 1 Zaïrian zaïre = 1 SDR	International Monetary Fund, Board of Governors, Resolution No. 31-4, 30 April 1976 ("Second Amendment")	The special pegged rate for diamond exports continued. RR: Large parallel market premium.	The system of gold par values officially ended by agreement of IMF members.
1 November 1978 -6 November 1978	pegged to rigid basket, dual rate; official rate 1 Zaïrian zaïre = 0.95 SDR	IMF ARER (1979: 460)	The special pegged rate for diamond exports continued. RR: Large parallel market premium. Freely falling / freely floating.	Devaluations in 1978 occurred during the time of an abortive invasion of Shaba (Katanga) province from Angola.
7 November 1978 -26 November 1978	pegged to rigid basket, dual rate; official rate 1 Zaïrian zaïre = 0.81 SDR	IMF ARER (1979: 460)	The special pegged rate for diamond exports continued. RR: Large parallel market premium. Freely falling / freely floating.	Devalued.
27 November 1978 -1 January 1979	pegged to rigid basket, dual rate; official rate 1 Zaïrian zaïre = 0.7614 SDR	IMF ARER (1979: 460)	The special pegged rate for diamond exports continued. RR: Large parallel market premiums.. Freely falling / freely floating.	Devalued.
1 January 1979 -23 August 1979	pegged to rigid basket, dual rate; official rate 1 Zaïrian zaïre = 0.5 SDR	IMF ARER (1980: 449)	The special pegged rate for diamond exports continued. RR: Large parallel market premium. Freely falling / freely floating.	Devalued.
24 August 1979 -21 February 1980	pegged to rigid basket, dual rate; official rate 1 Zaïrian zaïre = 0.375 SDR	IMF ARER (1980: 450)	The special pegged rate for diamond exports continued until 1 February 1980 (IMF ARER 1981: 461). RR: Large parallel market premium. Freely falling / freely floating.	Devalued. A currency confiscation occurred on 26 December 1979: until the end of the year only, old notes were allowed to be exchanged for new ones up to a maximum of 3,000 zaïres (US$1,500) for low-income people and 20,000 zaïres (US$10,000) for high-income people.
22 February 1980 -31 January 1981	pegged to rigid basket, dual rate; 1 Zaïrian zaïre = 0.2625 SDR	IMF ARER (1981: 461)	On 28 January 1981 the central bank gave limited recognition to the parallel market by allowing some commodities to be imported without recourse to the foreign-exchange resources of the banking system (Banque du Zaïre, Circular No. 175, 28 January 1981, later modified by Circular No. 178, 17 June 1981). RR: Large parallel market premium. Freely falling / freely floating.	Devalued.
1 February 1981 -18 June 1981	pegged to rigid basket; 1 Zaïrian zaïre = 0.2625 SDR	IMF ARER (1981: 461)	RR: Large parallel market premium. Freely falling / freely floating.	Abolished the special rate for diamonds.
19 June 1981 -11 September 1983	pegged to rigid basket; 1 Zaïrian zaïre = 0.1575 SDR	Banque du Zaïre annual report 1982: 24; IMF ARER (1982: 485)	RR: Large parallel market premium. Freely falling / freely floating.	Devalued.
12 September 1983 -29 February 1984	managed float, dual rate	Banque du Zaïre, Circular No. 199, 10 September 1983; Banque du Zaïre annual report 1983: 264; IMF ARER (1984: 536)	RR: Large parallel market premium. Freely falling.	Devalued to 1 Zaïrian zaïre = 0.03542 SDR, then floated the currency as a liberalizing measure. Also reintroduced a dual exchange rate as a temporary measure. The free rate was 5% above the official rate from 17 October 1983 and 2.5% above from 2 January 1984. An interbank foreign-exchange market began operating on 21 October 1983 (Banque du Zaïre annual report 1983: 265).
1 March 1984 -21 October 1993	independent float	Banque du Zaïre, Circular No. 210, 29 February 1984, cited in Banque du Zaïre annual report 1984-1985: 298	RR: Large parallel market premium. Freely falling / managed float; "hyperfloat" October 1991-September 1992.	Unified the exchange rate. On 19 August 1991 the official weekly auction "fixing" rate was unified with the "out of fixing" (parallel market) rates on other days of the week. (IMF ARER 1992: 546).
22 October 1993 -26 December 1996	Zaïrian new zaïre, independent float	Zaïre, Ordonnance-Loi No. 93/003, 28 September 1993, cited in Democratic Republic of the Congo, Decree-Law of 17 June 1998, itself reprinted in Banque Centrale du Congo Web site, viewed 14 November 2005; IMF ARER (1994: 563)	RR: Large parallel market premium. "Hyperfloat" November 1993-September 1994; freely falling / managed float from October 1996.	Introduced a new currency at 1 new zaïre = 3 million old zaïres. The exchange rate of new zaïre was initially 3 new zaïres = US$1, an 11% devaluation compared to the previous rate of the old zaïre. From the start of this period until 1997,the country was divided into two to four monetary zones (Banque Centrale du Congo annual report 1997: 165-7); see the comments in the "Other" section near the head of the country information.
27 December 1996 -29 June 1998	Zaïrian new zaïre, independent float, dual rate	Banque Centrale du Congo annual report 1998: 117; IMF ARER (1997: 215, 220)	RR: Large parallel market premiums in December 1996, after which parallel market data cease. Freely falling / managed float to November 1997, after which some data seem to cease.	Established an exchange tax of 2% to make up for revenue lost by a liberalization of exchange controls at the start of the period. IMF ARER classifies the exchange rate as unitary, but I classify it as a dual rate. In 1997 the tax fell to 0.2%, though IMF ARER (1998: 236) does not specify a date.
30 June 1998 -21 January 2000	Congolese franc, independent float	Democratic Republic of the Congo, Decree-Law of 17 June 1998, reprinted in Banque Centrale du Congo Web site, viewed 14 November 2005; IMF ARER (1999: 233)	The spread between the official buying and selling rates initially exceeded 2%, making the exchange rate in effect a dual rate (see Remarks).	Introduced a new currency at 1 Congolese franc = 100,000 new zaïres. The spread was initially 1.38-1.43 Congolese francs = US$1, giving a midrate of 1.405 Congolese francs = US$1. There was a one-year transition period for exchanging old currency. The new currency was part of an effort to restore a unified monetary are in the country after what would turn out to be one phase in a civil war.
22 January 2000 -11 June 2000	pegged, multiple rates; official rate 9 Congolese francs = US$1	IMF ARER (2001: 243)	Apparently, at least one of the official rates was floating (inferred from IMF ARER 2000: 236; 2001: 239).	Devalued from 4.50 Congolese francs = US$1, pegged to the US dollar, and introduced multiple exchange rates. Peace in the civil war proved elusive.
12 June 2000 -23 October 2000	pegged, multiple rates; official rate 23.50 Congolese francs = US$1	IMF ARER (2001: 243)	Apparently, at least one of the official rates was floating (inferred from IMF ARER 2000: 236; 2001: 239).	Devalued further during the civil war.
24 October 2000 -25 May 2001	pegged, multiple rates; official rate 50 Congolese francs = US$1	IMF ARER (2001: 243)	Apparently, at least one of the official rates was floating (inferred from IMF ARER 2000: 236; 2001: 239).	Devalued further during the civil war.
26 May 2001 -present (2005)	independent float	IMF ARER (2002: 247)		Floated and unified the exchange rate during the civil war.

Exchange rate arrangements: Katanga (1960-1963)