Exchange rate fluctuations and economic growth in the Democratic Republic of Congo

Fluctuations du taux de change et croissance économique en République Démocratique du Congo

Mbuyi Allegra Kabamba () and L. Deborah Matadi
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Mbuyi Allegra Kabamba: UNIKIN - University of Kinshasa

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Abstract: This paper studies the effects of the exchange rate on economic growth. Our empirical analysis focuses on the Democratic Republic of Congo (DRC) from 1990 to 2019 and uses the Ordinary Least Squares (OLS) method. The results show that exchange rate fluctuations have a negative effect on economic growth. In light of these results, we proposed a number of recommendations, including strengthening resilience through diversification of economic activity, building up budgetary reserves and increasing the level of international reserves. The latter, which can currently cover only three weeks of imports of goods and services, should be gradually increased to a long-term perspective.

Keywords: Exchange rate; OLS; economic growth; DRC.; Taux de change; MCO; croissance économique; RDC. (search for similar items in EconPapers)
Date: 2021-09-16
New Economics Papers: this item is included in nep-fdg and nep-isf
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