A severe shortage of small-denomination Congolese francs has made it nearly impossible for traders in Kirumba and the wider Lubero territory where the town is located, to conduct daily business. Small-scale traders, who prefer cash because of the high transactional cost of mobile payment systems, have been hit especially hard.
Pascal Kakule Kisorobo, head of the economic department in Kirumba, says the shortage is affecting the whole country. He acknowledges the negative consequences for traders but says that the government is taking steps to resolve the issue.
However, David Kamuha Musubaho, the finance adviser to the governor of North Kivu province, where Kirumba is located, doesn’t see the problem going away any time soon. The Central Bank of Congo hasn’t printed any new small-denomination notes in years because it doesn’t make economic sense, he says. “The mint cannot inject a lot of funds to produce a currency that no longer has any value on the market.”
A few years ago, small franc notes were more common. Local traders used them more often than larger ones. Gradually, the notes aged and ripped. It was common to see notes held together by clear adhesive tape. But eventually, they fell apart beyond repair and became unusable.
Source: globalpressjournal.com