BANQUE CENTRALE DU CONGO

LE GOUVERNEUR

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INSTRUCTION N° 10

TO AUTHORIZED BANKS
ON THE CONSTITUTION OF THE MANDATORY RESERVE
(Modification No. 47)

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The Central Bank of Congo,

Having regard to the Organic Law No. 18/027 of December 13, 2018, on the organization and functioning of the Central Bank of Congo, specifically Articles 10, 12, and 17;

Having regard to Law No. 22/069 of December 27, 2022, on the activity and control of credit institutions;

Enacts the following provisions:

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Article 1:

This Instruction aims to determine the rules relating to the constitution of the mandatory reserve by banks.

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Article 2:

Paragraph 1: On the constitution of the mandatory reserve

The mandatory reserve of an authorized bank is constituted:

• on the first day of the constitution period running from the 15th of the current month to the 14th of the following month, and the level of the mandatory reserve thus constituted remains unavailable during this entire period.

• for deposits and securities in Congolese Francs held with the authorized bank, the amount notified to it is lodged in a dedicated current account opened in the books of the Central Bank of Congo;

• for deposits and securities in foreign currencies, the amount notified to it is lodged in an account of the Central Bank of Congo opened in the books of a foreign correspondent, the details of which are communicated by the Central Bank of Congo;

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**Paragraph 2: On the excess of the account position over the mandatory reserve**

The excess of the account position over the mandatory reserve is the excess amount of the dedicated account balance of an authorized bank over the level of its mandatory reserve notified to it.

This excess is to be returned to the bank concerned upon its request.

The request for the return of the excess on the mandatory reserve constituted by an authorized bank must be transmitted in writing to the CBC within five days of receipt of the letter notifying the level of the mandatory reserve to be constituted.

**Paragraph 3: On the return of the excess of the mandatory reserve**

The return of the excess of the mandatory reserve of a bank is effected:

- in Congolese Francs, by crediting its settlement account held at the Automated Transfer System, upon receipt of the return request;

- in US Dollars, by transfer to the benefit of its account opened with its correspondent designated by it, upon receipt of the return request.

**Paragraph 4: On the negative flow of the mandatory reserve in US Dollars**

In the event of notification of a negative flow of the mandatory reserve in US Dollars between the period concerned and the reference period, the Congolese Franc equivalent of the negative flow is automatically returned on the day of notification to the bank concerned on its settlement account.

**Article 3:**

The tax base for calculating the mandatory reserve is based on the monthly averages of the weekly data of customer bank deposits in accounts and securities from the week of the first day of the previous month to the week of the last day of said month.

The extreme weeks mentioned in the previous paragraph are taken into account only if the days of the month in question are respectively in the majority.

**Article 4:**

The amount of the mandatory reserve of a bank is determined by applying the mandatory reserve coefficients according to the currency of constitution of deposits and securities, the maturity of deposits and securities, and the nature of the depositor or holder of the securities, recorded in the accounting headings below:

- account 33: ordinary deposits;

- account 34: term deposits;

- account 35: deposits with special regime;

- account 52: debt securities and similar instruments.

563, Colonel Tshatshi Boulevard - Kinshasa – Gombe  
Email: sgouverneur@bcc.cd - Website: http://www.bcc.cd

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**Article 5:**

The Central Bank of Congo communicates, by letter, the mandatory reserve coefficients to the professional association of banks and publishes them via the press and/or via its information system.

**Article 6:**

The Central Bank of Congo notifies each bank, by letter and/or via its information system, no later than the 12th of the month concerned. The amount of the mandatory reserve is to be constituted no later than the 15th of the month concerned.

The mandatory reserve constituted in accordance with paragraph 1 of this article remains unavailable until the last day of the constitution period.

**Article 7:**

The insufficiency of the mandatory reserve in Congolese Francs and US Dollars is noted day by day on the unavailable account.

The sanction applicable in case of insufficiency of the mandatory reserve is calculated per day of delay.

The daily sanction applicable in case of insufficiency of the mandatory reserve in national currency compared to the amount notified by the Central Bank of Congo is equal to the difference between the amount of the notification and that of the balance of the mandatory reserve account multiplied by the highest advance rate of the Central Bank increased by 60% and divided by 36,000. An automatic debit of the amount of the sanction is made at the end of the period considered on the settlement account of the bank concerned.

The daily sanction applicable in case of insufficiency of the mandatory reserve in US Dollars compared to the amount notified by the Central Bank of Congo is equal to the difference between the amount of the notification and that of the amount previously constituted by the bank in the books of the correspondent of the Central Bank of Congo, multiplied by the 1-month SOFR¹ rate increased by 60% and divided by 36,000. An automatic debit of the amount of the sanction is made at the end of the period considered on the settlement account of the bank concerned.

**Article 8:**

The mandatory reserve on customer deposits in national currency is remunerated at the rate fixed by the Central Bank of Congo.

¹ SOFR: Secured Overnight Financing Rate

563, Colonel Tshatshi Boulevard - Kinshasa – Gombe  
Email: sgouverneur@bcc.cd - Website: http://www.bcc.cd

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## Article 9: Transitional Provisions

### Paragraph 1: On the crystallization of the mandatory reserve in Congolese Francs

The reference data are the amounts in national currency resulting from deposits and securities in foreign currencies as crystallized in December 2021. These crystallized amounts are subject to progressive reduction by the Central Bank of Congo until the complete extinction of this stock.

### Paragraph 2: On the updating of the crystallized stock in Congolese Francs

The mandatory reserve crystallized in national currency, calculated on the basis of foreign currency deposits of December 2021, is updated according to the indicative exchange rate published by the CBC on the last working day of the month preceding the constitution period concerned.

### Paragraph 3: On the extinction of the crystallized stock in Congolese Francs

The mandatory reserve relating to deposits and securities in foreign currencies is partly constituted in national currency until the exhaustion of the crystallized stock in Congolese Francs. The tax base for calculating the mandatory reserve in US Dollars is based on the difference between the monthly averages of deposits of the weekly data from the week of the first day of the previous month to the week of the last day of said month and the reference data fixed by the Central Bank of Congo at the end of December 2021.

## Article 10:

This Instruction repeals all prior provisions contrary to it and enters into force on the date of its signature.

Done at Kinshasa, on OCT. 11, 2024

MALANGU KABEDI MBUYI  
Governor

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Email: sgouverneur@bcc.cd - Website: http://www.bcc.cd