The Central Bank Of Congo Support National Currency

As a result of historical reasons,the Democratic Republic of Congo led to a period of economic recession.On the monetary level,many agents lost their confidence in their own currency,began to tend to the US dollar,and began to use the dollar in all the economic transactions.The central bank has gradually lost its monetary sovereignty and lost its profits.Over the past decade,the macroeconomic framework of the Democratic Republic of Congo has gradually stabilized,but it is not sufficient to restore confidence in its own currency.The dollar continues to dominate and affects the choice of economic agents in terms of currency holdings.The rate of dollarization has risen from 72%in 2002 to 85%in 2015.The problem of dollar depreciation is becoming more and more obvious.The government of Congo has taken concrete measures to subsidize the national economy.However,in recent years,the trend of the dollar continues to decline,the phenomenon of Congo's current dollarization is becoming more and more serious,which not only restricts the reform of monetary policy,but also has a great impact on economic development.In the face of this situation,the Democratic Republic of Congo began to combat the dollarization of the economy.In 2012,the central bank and the government co operated an economic project that allowed the state to issue government bonds to increase the demand for domestic currency in order to make the currency higher than the foreign currency and thus improve the use of its own currency.In order to ensure the implementation of the project,the state has implemented a series of measures on the basis of stabilizing the macro economy.But this task is a long way to go.It will face many difficulties and challenges.Therefore,this paper studies the central bank to support the national currency topic,adopts the method of data analysis and vector error correction model to study.The paper first introduces the concept of basic money,and then analyzes the monetary policy of the Central Bank of Congo,the situation of the monetary demand in the Democratic Republic of Congo and the situation of the monetary demand.Congo gold's dollarization and monetary policy to support the domestic currency policy and so on,the final analysis of the problems faced,and put forward the implementation of the long-term monetary policy system recommendations,so as to better promote the development of the country.