"Why do we conduct business in US dollars?," wonders Kenya's President who calls on African countries to refrain from the use of US dollars in trading.
Kenyan President William Samoei Ruto has urged African countries to cease the use of the US currency in intracontinental trade. President Ruto recently addressed the Djibouti parliament, emphasising the importance of abandoning reliance on the US currency for trade transactions between Djibouti and Kenya.
"Why is Djibouti-Kenya trade conducted in dollars? It's irrational. When we trade with the US, let us pay in US dollars. We will use the local currency when we trade with Djibouti," stated President Ruto.
Just In: President of Kenya, @WilliamsRuto, Urges African Nations to Dump the US Dollar for Intracontinental Trade. WATCH pic.twitter.com/mHE8Bshquv
— Simon Ateba (@simonateba) June 13, 2023
The African Export-Import Bank has created a mechanism that will allow trade in national currencies on the continent. Afreximbank facilitates the processing of payments in local currency, allowing traders to perform transactions more smoothly. The President of Kenya announced Kenya's support for Afreximbank's Pan-African payment and settlement system.
Kenya's commitment to creating deeper economic integration within Africa and lowering dependency on external currencies for regional trade is reflected in President Ruto's words. The idea to move intracontinental trade away from the US dollar might potentially expedite transactions and encourage economic growth among African states.
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