President William Ruto of Kenya is speaking out against the use of the US Dollar in African trade, calling for African nations to shift towards using local currencies instead.
At a recent conference, president Ruto explained that most transactions within Africa are settled in US Dollars, despite not having any valid reason for doing so. President Ruto emphasized Kenya’s commitment to increasing economic integration within Africa and lessening dependence on external currencies for regional trade. If implemented, this proposal could simplify transactions, allowing African nations to reap the benefits of increased economic activity.
However, those who want to continue using the US Dollar say switching to local currencies could pose a problem. Countries with more stable and widely available currencies, backed by a robust economy, tend to attract more trading partners. A small country with limited trade and influence, where its currency is rarely used outside its borders due to various factors such as a lack of trading partners or limited manufacturing capabilities.