https://en.sputniknews.africa/20230615/why-us-dollars-kenyas-ruto-remains-resolute-on-push-for-local-currencies-in-african-trade-1059934931.html
'Why US Dollars?' Kenya's Ruto Remains Resolute on Push for Local Currencies in African Trade
'Why US Dollars?' Kenya's Ruto Remains Resolute on Push for Local Currencies in African Trade
Sputnik Africa
Calls for de-dollarization are getting louder across Africa and beyond, as surging powers, such as Russia, China, and Brazil, are setting out to use national... 15.06.2023, Sputnik Africa
2023-06-15T13:16+0200
2023-06-15T13:16+0200
2023-06-15T16:42+0200
sub-saharan africa
kenya
ditching dollar
east africa
african continental free trade area (afcfta)
us dollar
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President William Ruto of Kenya is an outspoken proponent of dumping the US dollar in trade between African countries, and has remained resolute in his call for the greenback to replaced by local currencies.In his address to the Djibouti Parliament during his visit to the country, the Kenyan leader questioned the necessity of the US currency, for example, in trade between Kenya and Djibouti.According to the president, instead of the greenback, the countries of the continent could opt for the pan-African payment and settlement system (PAPSS), a mechanism of the African Export-Import Bank (Afreximbank) that "enables traders within the continent to engage in trade using their respective local currencies".Ruto clarified that the intention is to ease trade on the continent.In late May, President Ruto made similar remarks about the necessity of ditching the dollar during an African private sector dialogue conference of the African Continental Free Trade Area (AfCFTA) in Kenya.At the time, Ruto noted that the "subjection to a dollar environment" has been hindering payments for goods and services between African countries.In 2022, over 80% of intra-African payments went through Europe or the United States, resulting in substantial transfer and compliance costs, according to Mike Ogbalu III, chief executive officer of PAPSS.
https://en.sputniknews.africa/20230530/kenya-promoting-pan-african-payment-system-in-drive-to-ditch-dollar-1059586014.html
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kenya, ditching dollar, east africa, african continental free trade area (afcfta), us dollar, djibouti, de-dollarization
'Why US Dollars?' Kenya's Ruto Remains Resolute on Push for Local Currencies in African Trade
13:16 15.06.2023 (Updated: 16:42 15.06.2023) Calls for de-dollarization are getting louder across Africa and beyond, as surging powers, such as Russia, China, and Brazil, are setting out to use national currencies in their settlements and nurturing the idea to design a single BRICS currency as an alternative to the greenback.
President William Ruto of Kenya is an outspoken proponent of dumping the US dollar in trade between African countries, and has remained resolute in his call for the greenback to replaced by local currencies.
In his address to the Djibouti Parliament during his visit to the country, the Kenyan leader
questioned the necessity of the US currency, for example, in trade between Kenya and Djibouti.
"From Djibouti selling to Kenya or traders from Kenya selling to Djibouti, we have to look for US dollars. How is US dollars part of the trade between Djibouti and Kenya? Why?" Ruto said.
According to the president,
instead of the greenback, the countries of the continent could opt for the pan-African payment and settlement system (PAPSS), a mechanism of the African Export-Import Bank (Afreximbank) that "enables traders within the continent to engage in trade using their respective local currencies".
Ruto clarified that the intention is to ease trade on the continent.
"We just want to trade more freely. Let us pay in US dollars what we are buying from the US. But what we are buying from Djibouti, let’s use local currency," the leader stressed.
In late May, President Ruto made similar remarks about the necessity of ditching the dollar during an African private sector dialogue conference of the African Continental Free Trade Area (AfCFTA) in Kenya.
At the time, Ruto noted that the "subjection to a dollar environment" has been hindering payments for goods and services between African countries.
In 2022, over 80% of intra-African payments went through Europe or the United States, resulting in substantial transfer and compliance costs, according to Mike Ogbalu III, chief executive officer of PAPSS.
