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.