Kenyan President William Ruto called upon African countries to break free from their dependence on the US dollar for trade transactions within the continent.
The president said this while addressing the Djibouti parliament on Tuesday.
Ruto emphasized the urgent need to abandon the prevailing practice of conducting trade between African nations using the US dollar.
“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 asked.
Highlighting a viable alternative, Ruto pointed to the African Export–Import Bank (Afreximbank) and its pioneering initiative, the pan-African Payment and Settlement System (PAPSS).
This system enables traders within Africa to engage in trade using their respective local currencies, thus fostering greater economic integration within the continent.
The Kenyan president clarified that the intention is not to oppose the US dollar outright, but rather to facilitate smoother trade operations within Africa.
He proposed that transactions with countries like the United States could still be settled in US dollars, while purchases from Djibouti and other African nations could be conducted using local currencies.
“Kenya fervently champions the Pan African Payment and Settlement System, established by our very own institution, the Afreximbank. Why should we continue to buy goods from Djibouti and pay in dollars? There is no logical basis for it,” President Ruto asserted.
He further elaborated, “We do not seek to undermine the importance of the US dollar. We simply desire a more liberated trade environment. Let us pay in US dollars for what we purchase from the United States. However, when it comes to transactions with Djibouti, let us utilize our local currencies.”
Comments are closed.