De-Dollarization in Africa Could Strengthen Monetary Sovereignty and Boost Intra-Continental Trade, Expert Says
19:14 17.04.2025 (Updated: 19:44 17.04.2025)
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De-Dollarization in Africa Could Strengthen Monetary Sovereignty and Boost Intra-Continental Trade, Expert Says
Deepening bilateral trade agreements in local currencies is becoming increasingly relevant amid US tariffs, Gift Essinalo, a researcher from Mozambique's Center for Public Integrity, told Sputnik Africa.
"Such strategies not only strengthen the regional cooperation, but also promote advancement on pan-African payment and settlement system, a key initiative for African Union, facilitating national transition with the continent," the economist said.
Moreover, trading in local currencies eliminates intermediaries, reduces exposure to dollar fluctuations, and strengthens monetary sovereignty, reducing Africa's dependence on US monetary policies, according to him.
"The escalation of US tariffs may accelerate Africa’s alignment with alternative financial infrastructure to SWIFT, such as the BRICS payment system and other emerging operational and global financial integration initiatives," Essinalo noted.
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