Central Bank of the Congo
Encyclopedia
The Central Bank of the Congo is the central bank
of the Democratic Republic of the Congo
. The bank's main offices are on Boulevard Colonel Tshatshi in La Gombe
in Kinshasa
.
, Goma
, Kamina
, Kasumbalesa
, Kikwit
, Tshikapa
, Ilebo
and Matadi
. In cities where the central bank is not present, a commercial bank can be appointed to represent it; Trust Merchant Bank
performs such a role in Likasi
and Kolwezi
.
ruled the Congo as his private domain. On July 27, 1887, he issued a royal decree that established the Franc
as the money of account for the Congo Free State
, and for Rwanda
and Burundi
. In 1890 the Heligoland-Zanzibar Treaty
put Rwanda and Burundi within the German sphere of influence in Africa. Consequently, the German East African rupie
became the official currency
in those two colonies though the Franc
continued to circulate there. In 1908, Belgium
assumed responsibility for the Congo, taking it from Leopold; as a result, the Belgian Congo
became a member of the Latin Monetary Union
.
In 1909, a number of Belgian banks jointly established the Bank of the Belgian Congo. This freed the Bank to act as the agent in the Congo for all the major Belgian banks rather than as a subsidiary or affiliate of only one of them. However, the dominant bank was the Société Générale de Belgique
and eventually it became the Bank's majority owner. In 1911 the Colonial government awarded the Bank a 25-year monopoly on the right of note issuance for the Colony and appointed it as fiscal agent for the colonial government. The Bank issued its first banknotes in 1912.
Following Germany
's defeat in World War I
, Belgium assumed a League of Nations mandate
over Rwanda and Burundi. Belgium then included them in the Congo Franc Zone.
The Convention of 10 October 1927 revisited the question of note issuance and extended the Bank's monopoly until 1 July 1952. During World War II
Belgium came under German Occupation. The Bank of England
then assumed a temporary involvement in the Congo's affairs and the Congo franc was listed in London
.
On 1 July 1952, the day after the expiration of the Bank’s monopoly, the newly-formed Banque Centrale du Congo Belge et du Ruanda-Urundi assumed responsibility for note issuance. The Banque Centrale du Congo-Belge et du Ruanda-Urundi was dissolved after Congo's independence in 1960. The Banque Nationale du Congo was created in 1964 to serve as the new country's central bank.
For about four years from 1960 to 1964, the Banque d' Emission du Rwanda et du Burundi served as the central bank for the linked territories. In 1961 Rwanda
became an independent republic
; the next year Burundi
became independent as a monarchy
. In 1964 each state established its own central bank, the Royal Bank of Burundi and the Banque Nationale du Rwanda. In 1966, Burundi became a republic and its central bank changed its name to Banque de la République du Burundi.
When the Congo changed its name to Zaire
in 1971, the Banque Nationale du Congo became Bank of Zaire. Then in 1997 when the country's name became the Democratic Republic of the Congo, the bank took its current name: Banque Centrale du Congo.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of the Democratic Republic of the Congo
Democratic Republic of the Congo
The Democratic Republic of the Congo is a state located in Central Africa. It is the second largest country in Africa by area and the eleventh largest in the world...
. The bank's main offices are on Boulevard Colonel Tshatshi in La Gombe
La Gombe (Kinshasa)
Gombe is a municipality in the Lukunga district of Kinshasa, the capital city of the Democratic Republic of the Congo.It is also known as La Gombe and was formerly known as Kalina...
in Kinshasa
Kinshasa
Kinshasa is the capital and largest city of the Democratic Republic of the Congo. The city is located on the Congo River....
.
Regional Operations
The central bank operates a network of regional branches across the DRC, the largest country in Sub-Saharan Africa. Branches can be found in LubumbashiLubumbashi
Lubumbashi is the second largest city in the Democratic Republic of the Congo, second only to the nation's capital Kinshasa, and the hub of the southeastern part of the country. The copper-mining city serves as the capital of the relatively prosperous Katanga Province, lying near the Zambian border...
, Goma
Goma
Goma is a city in the eastern Democratic Republic of the Congo, on the northern shore of Lake Kivu, next to the Rwandan city of Gisenyi. The lake and the two cities are in the western branch of the Great Rift Valley, and Goma lies only 13 to 18 km due south of the crater of the active...
, Kamina
Kamina
Kamina is a city in Katanga Province, Democratic Republic of the Congo. It is located at around . It is the provincial capital.- Transport :...
, Kasumbalesa
Kasumbalesa
Kasumbalesa or sometimes Kasile is a border town in the province of Katanga in the Democratic Republic of the Congo about 96 km south-south-west of Lubumbashi. It is located at the border with Zambia, and is connected by road and railway with Lubumbashi....
, Kikwit
Kikwit
Kikwit is the largest city of Kwilu District, lying on the Kwilu River in the southwestern part of the Democratic Republic of Congo. Kikwit is also known in the region under the nickname "The Mother". The population is approximately 294,210...
, Tshikapa
Tshikapa
Tshikapa is a city in Kasaï District in the Democratic Republic of the Congo. The city is located about 40 miles north of the Angolan border and 120 miles west of province capital Kananga at the confluence of the Tshikapa and Kasai rivers. According to records published by the Utrecht University...
, Ilebo
Ilebo
Ilebo, formerly known as Port-Francqui, is a town in Kasaï District in the Democratic Republic of Congo, lying at the highest navigable point of the Kasaï River. As such, it is an important transport hub for ferries to Kinshasa and trains to Lubumbashi....
and Matadi
Matadi
Matadi is the chief sea port of the Democratic Republic of the Congo and the capital of the Bas-Congo province. It has a population of 245,862 . Matadi is situated on the left bank of the Congo River from the mouth and below the last navigable point before rapids make the river impassable for a...
. In cities where the central bank is not present, a commercial bank can be appointed to represent it; Trust Merchant Bank
Trust Merchant Bank
Trust Merchant Bank or TMB, is an independent commercial bank based in the Democratic Republic of Congo , with its headquarters located in Lubumbashi. The bank began operations in 2004...
performs such a role in Likasi
Likasi
Likasi, formerly known as Jadotville or Jadotstad, is a city in Haut-Katanga Province, in the south-east of the Democratic Republic of Congo.-Demographics:Likasi has a population of around 367,000...
and Kolwezi
Kolwezi
Kolwezi is a city in Katanga Province in the south of the Democratic Republic of the Congo, west of Likasi. It is home to an airport and a railway to Lubumbashi. The population is approximately 418,000....
.
History
From 1886 to 1908, King Leopold II of BelgiumLeopold II of Belgium
Leopold II was the second king of the Belgians. Born in Brussels the second son of Leopold I and Louise-Marie of Orléans, he succeeded his father to the throne on 17 December 1865 and remained king until his death.Leopold is chiefly remembered as the founder and sole owner of the Congo Free...
ruled the Congo as his private domain. On July 27, 1887, he issued a royal decree that established the Franc
Franc
The franc is the name of several currency units, most notably the Swiss franc, still a major world currency today due to the prominence of Swiss financial institutions and the former currency of France, the French franc until the Euro was adopted in 1999...
as the money of account for the Congo Free State
Congo Free State
The Congo Free State was a large area in Central Africa which was privately controlled by Leopold II, King of the Belgians. Its origins lay in Leopold's attracting scientific, and humanitarian backing for a non-governmental organization, the Association internationale africaine...
, and for Rwanda
Rwanda
Rwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo...
and Burundi
Burundi
Burundi , officially the Republic of Burundi , is a landlocked country in the Great Lakes region of Eastern Africa bordered by Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. Its capital is Bujumbura...
. In 1890 the Heligoland-Zanzibar Treaty
Heligoland-Zanzibar Treaty
The Heligoland-Zanzibar Treaty of 1 July 1890 was an agreement between the United Kingdom and the German Empire concerning mainly territorial interests in Africa.-Terms:...
put Rwanda and Burundi within the German sphere of influence in Africa. Consequently, the German East African rupie
German East African rupie
The Rupie was the currency of German East Africa between 1890 and 1916, continuing to circulate in the Tanganyika Territory until 1920.-History:...
became the official currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
in those two colonies though the Franc
Franc
The franc is the name of several currency units, most notably the Swiss franc, still a major world currency today due to the prominence of Swiss financial institutions and the former currency of France, the French franc until the Euro was adopted in 1999...
continued to circulate there. In 1908, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
assumed responsibility for the Congo, taking it from Leopold; as a result, the Belgian Congo
Belgian Congo
The Belgian Congo was the formal title of present-day Democratic Republic of the Congo between King Leopold II's formal relinquishment of his personal control over the state to Belgium on 15 November 1908, and Congolese independence on 30 June 1960.-Congo Free State, 1884–1908:Until the latter...
became a member of the Latin Monetary Union
Latin Monetary Union
The Latin Monetary Union was a 19th century attempt to unify several European currencies, at a time when most circulating coins were still made of gold and silver...
.
In 1909, a number of Belgian banks jointly established the Bank of the Belgian Congo. This freed the Bank to act as the agent in the Congo for all the major Belgian banks rather than as a subsidiary or affiliate of only one of them. However, the dominant bank was the Société Générale de Belgique
Société Générale de Belgique
The Société Générale de Belgique was one of the largest companies that ever existed in Belgium. It was founded in 1822 by William I, and existed until 2003, when its then sole shareholder, Suez Lyonnaise des Eaux, merged it with Tractebel to form Suez-Tractebel.-History:As part of the terms of the...
and eventually it became the Bank's majority owner. In 1911 the Colonial government awarded the Bank a 25-year monopoly on the right of note issuance for the Colony and appointed it as fiscal agent for the colonial government. The Bank issued its first banknotes in 1912.
Following Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
's defeat in World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
, Belgium assumed a League of Nations mandate
League of Nations mandate
A League of Nations mandate was a legal status for certain territories transferred from the control of one country to another following World War I, or the legal instruments that contained the internationally agreed-upon terms for administering the territory on behalf of the League...
over Rwanda and Burundi. Belgium then included them in the Congo Franc Zone.
The Convention of 10 October 1927 revisited the question of note issuance and extended the Bank's monopoly until 1 July 1952. During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
Belgium came under German Occupation. The Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
then assumed a temporary involvement in the Congo's affairs and the Congo franc was listed in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
.
On 1 July 1952, the day after the expiration of the Bank’s monopoly, the newly-formed Banque Centrale du Congo Belge et du Ruanda-Urundi assumed responsibility for note issuance. The Banque Centrale du Congo-Belge et du Ruanda-Urundi was dissolved after Congo's independence in 1960. The Banque Nationale du Congo was created in 1964 to serve as the new country's central bank.
For about four years from 1960 to 1964, the Banque d' Emission du Rwanda et du Burundi served as the central bank for the linked territories. In 1961 Rwanda
Rwanda
Rwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo...
became an independent republic
Republic
A republic is a form of government in which the people, or some significant portion of them, have supreme control over the government and where offices of state are elected or chosen by elected people. In modern times, a common simplified definition of a republic is a government where the head of...
; the next year Burundi
Burundi
Burundi , officially the Republic of Burundi , is a landlocked country in the Great Lakes region of Eastern Africa bordered by Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. Its capital is Bujumbura...
became independent as a monarchy
Monarchy
A monarchy is a form of government in which the office of head of state is usually held until death or abdication and is often hereditary and includes a royal house. In some cases, the monarch is elected...
. In 1964 each state established its own central bank, the Royal Bank of Burundi and the Banque Nationale du Rwanda. In 1966, Burundi became a republic and its central bank changed its name to Banque de la République du Burundi.
When the Congo changed its name to Zaire
Zaire
The Republic of Zaire was the name of the present Democratic Republic of the Congo between 27 October 1971 and 17 May 1997. The name of Zaire derives from the , itself an adaptation of the Kongo word nzere or nzadi, or "the river that swallows all rivers".-Self-proclaimed Father of the Nation:In...
in 1971, the Banque Nationale du Congo became Bank of Zaire. Then in 1997 when the country's name became the Democratic Republic of the Congo, the bank took its current name: Banque Centrale du Congo.
Source
Banque du Congo belge. 1959. Banque du Congo belge, 1909-1959. Bruxelles, Editions L. Cuypers.Disambiguation
As far as the Republic of Congo is concerned, it is part of the group of countries served by the Banque des Etats de l'Afrique Centrale, the Central African regional central bank.See also
- Central banks and currencies of AfricaCentral banks and currencies of AfricaThere are two African currency unions associated with multinational central banks; the West African Banque Centrale des Etats de l'Afrique de l'Ouest and the Central African Banque des Etats de l'Afrique Centrale...
- JFPI CorporationJFPI CorporationJFPI Corporation is an international closed-end investment and economic empowerment conglomerate based in Africa.While 100% of the shares are owned by private individuals, it is managed by a 53-member Board of Directors, representing each nation contained by Africa.JFPI promotes the growth of...
- Economy of the Democratic Republic of the CongoEconomy of the Democratic Republic of the CongoSparsely populated in relation to its area, the Democratic Republic of the Congo is home to a vast potential of natural resources and mineral wealth, its untapped deposits of raw minerals are estimated to be worth in excess of US$ 24 trillion, yet the economy of the DRC has declined drastically...
- List of central banks
- List of governors of the Banque Centrale du Congo