In the eastern Congolese city of Bukavu, a crisis is unfolding as residents struggle with a shortage of usable banknotes. The city, controlled by the rebel group M23 since February, has seen a surge in damaged and mutilated banknotes being used as a means of exchange. These notes, often glued or taped together, have become a common sight in the city’s markets, leading to confusion and tensions between buyers and sellers.
The shortage of banknotes is a result of the city’s banks being closed by Congolese authorities before the M23 takeover. With no access to cash and the banking authorities unable to regulate the money supply, residents have been forced to rely on whatever means they can find to make transactions. Many have turned to using old, torn, and patched-up banknotes, which were initially intended to be destroyed by the banks.
The origin of these damaged banknotes is unclear, but some residents suspect that they may have been stolen from the banks during the M23’s takeover. The circulation of both damaged and regular banknotes has led to difficulties in trade, with some sellers accepting them while others refuse. This has resulted in many residents, like Alain Mukumiro, a 36-year-old fridge technician, struggling to make ends meet. Mukumiro, who has had his money refused by shopkeepers due to its condition, often has to go to sleep without food.
According to David Kyanga, a professor of economics at Bukavu’s Higher Institute of Commerce, the damaged banknotes should be considered valid, given the city’s isolation from the Congolese government. He argues that the rebel authorities should clearly communicate to the population that these notes are acceptable. However, the Congolese authorities in Kinshasa have not made any official announcements regarding the provision of banknotes to the eastern territories controlled by M23.
In an attempt to address the issue, the M23-appointed governor of South Kivu Province, Patrick Busu Bwasingwi Nshombo, recently announced the opening of a bank to exchange damaged banknotes for new ones. However, the operation was suspended due to the overwhelming number of residents seeking to exchange their notes. As the situation continues to unfold, residents of Bukavu remain uncertain about their financial future, highlighting the need for a stable and reliable monetary system in the region.
The crisis in Bukavu is a symptom of the larger conflict between the Congolese government and armed groups, which has resulted in over 7 million people being displaced and thousands killed. The city’s banking system and economy will likely remain in turmoil until a resolution is found, leaving residents to struggle with the day-to-day challenges of surviving in a war-torn region.
