According to Mining Weekly, citing Reuters, the Governor of the Central Bank of the Democratic Republic of the Congo (DRC) announced that the country will begin establishing official gold reserves to stabilize its national currency and support economic development.

On Wednesday, international gold prices surged past US$4,000 per ounce, marking a gain of more than 50% year-to-date, driven in part by strong buying from central banks worldwide.

Earlier this year, escalating conflict in the mineral-rich eastern regions of the DRC strained the national budget. Despite being a significant gold producer, the country has never held gold as part of its official reserve assets. The DRC—Africa’s largest producer of cobalt and a top copper supplier—is paradoxically one of the world’s poorest nations.

André Wameso, appointed Governor of the Central Bank in July, told Reuters in an interview on Wednesday:

“One of my first decisions… was to enable the central bank to build gold reserves, using gold as hard currency alongside traditional reserves.”

How Much Gold Does the DRC Produce?

When asked how much gold the central bank plans to acquire, Wameso replied, “There is no limit.” He did not disclose whether purchases have already begun or when they might start.

According to the World Gold Council, the DRC ranked as Africa’s 10th-largest gold producer in 2024, with output just exceeding 40 tonnes. However, Wameso noted that a significant portion of gold mined by artisanal and informal operators is smuggled out through neighboring countries, bypassing state revenues and failing to support the domestic economy.

“Gold should serve as a pillar of sound fiscal and monetary policy to drive economic development,” he emphasized—though he offered no specific roadmap for implementing this shift.

Before his appointment, Wameso served as an advisor to the president and has a background in banking. He described gold reserves as a complement—not a replacement—for traditional foreign exchange holdings.

Africa’s Gold Reserve Trend

The DRC joins a growing list of African nations building gold-backed reserves. Ghana, Tanzania, and Nigeria have already begun domestic gold purchases for reserve purposes. Rwanda, Burkina Faso, and Namibia are actively expanding their holdings, while Kenya and Uganda are considering similar moves. Last year, Zimbabwe launched a new currency, the ZiG, directly backed by gold reserves.

Wameso highlighted that increasing gold reserves could strengthen the Congolese franc (CDF) and enhance regional trade integration through frameworks like the African Continental Free Trade Area (AfCFTA), of which the DRC is a member.

“This will not only make the Congolese franc stronger but also enable its international circulation—backed by gold reserves, not just U.S. dollar reserves,” he said.

Currently, the CDF has limited use even domestically. Wameso attributed recent fiscal pressures to heightened defense spending amid ongoing conflict in the east. Neighboring Rwanda has denied supporting the M23 rebel movement operating in the region.

Monetary Policy Outlook

On Tuesday, under Wameso’s leadership, the central bank cut its benchmark lending rate. He indicated that further easing is possible if inflation continues its downward trend.

“If we want to further strengthen the currency by financing the economy in Congolese francs, the benchmark rate must be lowered further,” he said, adding that the bank has been absorbing excess liquidity from the market.

The International Monetary Fund (IMF), which maintains a lending program with the DRC, has expressed concern over the government’s failure to meet budget deficit targets and has urged it to build adequate foreign exchange reserves.

Wameso welcomed the recent appreciation of the Congolese franc as timely support for these efforts:

“This will help us because banks are now seeking Congolese francs—and we hold them. This allows us to rebuild our U.S. dollar reserves by purchasing dollars at lower market rates.”

(Source: Ministry of Natural Resources)