Economic and Financial Committee
Democratic Republic of the Congo
Cite as https://mymun.com/ppdb/3778
Topic A: Competitive Currency Devaluation
Faced with currency depreciation, the government of the Democratic Republic of Congo (DRC) banned the widespread use of U.S. dollars for all domestic commercial transactions in 1999. The government was unable to provide foreign exchange for economic transactions, thus was forced to print out money to finance expenditures that caused a level of 400% inflation in several years. Until 2005, GDP of DRC has grown with a negative rate of 3%.
In 2009, thanks to international investment, infrastructure construction and the new managed floating rates system adopted, the DRC has marked an increase of 12.1% GDP, the highest in the world in 2009. However DRC has still one of the lowest GDP per capita in the world.