Identifier
Created
Classification
Origin
09KINSHASA331
2009-04-06 15:59:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kinshasa
Cable title:
CENTRAL BANK RECEIVES ESF FUNDS
how-toVZCZCXRO0708 RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN DE RUEHKI #0331 0961559 ZNR UUUUU ZZH R 061559Z APR 09 FM AMEMBASSY KINSHASA TO RUEHC/SECSTATE WASHDC 9437 INFO RUCNSAD/SADC COLLECTIVE RUEHXR/RWANDA COLLECTIVE RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPARTMENT OF TREASURY WASHINGTON DC
UNCLAS KINSHASA 000331
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EAID EFIN PGOV PREL CG
SUBJECT: CENTRAL BANK RECEIVES ESF FUNDS
REF: (A) KINSHASA 317
(B) KINSHASA 271
UNCLAS KINSHASA 000331
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EAID EFIN PGOV PREL CG
SUBJECT: CENTRAL BANK RECEIVES ESF FUNDS
REF: (A) KINSHASA 317
(B) KINSHASA 271
1. (SBU) The Prime Minister's Deputy Chief of Staff, Jean-Claude
Nachega, informed post that the Congolese Central Bank (Banque
Centrale du Congo, BCC, in French) received on March 27 the
approximately $200 million in IMF emergency assistance under the
Rapid-Access Component of the Exogenous Shocks Facility (RAC-ESF).
The funds were provided in a single tranche and will augment the
BCC's international reserves, which had been at the lowest levels in
five years.
2. (U) The ESF funds will also provide the BCC with the ability to
intervene in the foreign exchange market. The rapid deterioration
of the Congolese Franc (CF) against the dollar has been one of the
most visible signs of the impact of the global economic crisis on
the Democratic Republic of Congo(DRC)'s economy. The CF has lost
approximately 30% of its value against the U.S. dollar in the last
three months, significantly undermining purchasing power for many
Congolese. (Note: Prior to the final quarter of calendar year 2008,
the CF had remained stable for almost three years, reflecting the
GDRC's tight monetary policy. End note.) The GDRC intervened
several times in the foreign exchange market in early 2009 in an
effort to mop-up excess liquidity and strengthen the CF. However,
with international reserves levels at negligible levels and interest
rates having already been raised four times, the BCC had limited
ability left to stabilize the CF before the arrival of the ESF
monies.
3. (SBU) Comment: The Government made no formal statements
following the arrival of the funds to the BCC. To our knowledge
only four Kinshasa daily newspapers have reported on the receipt of
this infusion of much-needed capital. Positive economic
developments in the DRC are few and far between these days; since
the ESF is, in part, intended to strengthen confidence in and send a
positive signal to the market, the GDRC would do well to undertake a
more pro-active PR campaign. End comment.
GARVELINK
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EAID EFIN PGOV PREL CG
SUBJECT: CENTRAL BANK RECEIVES ESF FUNDS
REF: (A) KINSHASA 317
(B) KINSHASA 271
1. (SBU) The Prime Minister's Deputy Chief of Staff, Jean-Claude
Nachega, informed post that the Congolese Central Bank (Banque
Centrale du Congo, BCC, in French) received on March 27 the
approximately $200 million in IMF emergency assistance under the
Rapid-Access Component of the Exogenous Shocks Facility (RAC-ESF).
The funds were provided in a single tranche and will augment the
BCC's international reserves, which had been at the lowest levels in
five years.
2. (U) The ESF funds will also provide the BCC with the ability to
intervene in the foreign exchange market. The rapid deterioration
of the Congolese Franc (CF) against the dollar has been one of the
most visible signs of the impact of the global economic crisis on
the Democratic Republic of Congo(DRC)'s economy. The CF has lost
approximately 30% of its value against the U.S. dollar in the last
three months, significantly undermining purchasing power for many
Congolese. (Note: Prior to the final quarter of calendar year 2008,
the CF had remained stable for almost three years, reflecting the
GDRC's tight monetary policy. End note.) The GDRC intervened
several times in the foreign exchange market in early 2009 in an
effort to mop-up excess liquidity and strengthen the CF. However,
with international reserves levels at negligible levels and interest
rates having already been raised four times, the BCC had limited
ability left to stabilize the CF before the arrival of the ESF
monies.
3. (SBU) Comment: The Government made no formal statements
following the arrival of the funds to the BCC. To our knowledge
only four Kinshasa daily newspapers have reported on the receipt of
this infusion of much-needed capital. Positive economic
developments in the DRC are few and far between these days; since
the ESF is, in part, intended to strengthen confidence in and send a
positive signal to the market, the GDRC would do well to undertake a
more pro-active PR campaign. End comment.
GARVELINK