• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Thursday, May 15, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home News

Kenyan President urges African countries to ditch the Dollar

by Reshab Agarwal
June 1, 2023
in News, Trending
Reading Time: 3 mins read
0
Kenyan President urges African countries to ditch the Dollar
TwitterWhatsappLinkedin

Kenyan President William Ruto has urged African countries to ditch the Dollar and explore alternative currencies for trade and investment. Speaking at a regional economic summit held in Nairobi, President Ruto emphasized the need for African nations to assert greater control over their economies and reduce their exposure to external economic fluctuations. President Ruto also emphasized the benefits of the Pan-African Payments and Settlement System (PAPSS), which enables businesspeople to prioritize the seamless movement of goods and services.

You might also like

160 Boeing Aircraft Ordered by Qatar in Trump-Led Trade Agreement

Top CEOs Join President Trump for High-Profile Dinner with Saudi Crown Prince

Trump Pushes Back on Apple’s India Manufacturing Plans, Urges Focus on U.S. Production

Pan-African Settlement System Aids African Nations in avoiding reliance on U.S. Dollar

Kenyan President William Ruto has urged African leaders to commence actions toward replacing the U.S. dollar with the Pan-African Payments and Settlement System (PAPSS) as an alternative payment solution. He highlighted that the PAPSS, launched in January 2022, enables African nations to utilize their own currencies for intra-continental trade.

Addressing a gathering of government and private sector representatives, the Kenyan President proposed that African nations initiate the process of moving away from the U.S. dollar by promoting the participation of central banks and commercial banks in the Pan-African Payments and Settlement System (PAPSS).

African institutions collaborate to develop Pan-African Payment Solution

According to a report from East Africa, the Pan-African Payments and Settlement System (PAPSS), an alternative payment system supported by African central banks, was developed in collaboration between the African Export-Import Bank (Afreximbank) and the Secretariat of the African Continental Free Trade Area (AFCFTA).

In elaborating on the reasons behind the necessity for African countries to ditch the Dollar, it is reported that the Kenyan leader stated:

“We are all struggling to make payments for goods and services from one country to another because of differences in currencies. And in the middle of all these, we are all subjected to a dollar environment.”

However, Ruto proposed that once the settlement system is implemented, the primary focus of businesspeople should be on facilitating the movement of goods and services. The Kenyan president stated that the challenging aspects related to currencies would be handled by Afreximbank, a pan-African multilateral trade finance institution.

“There has been a mechanism where all our traders can trade in the local currency, and we leave it to the Afreximbank to settle all the payments. We do not have to look for dollars; our businessmen will concentrate on moving goods and services and leave the arduous task of currencies to Afreximbank.”

Reliance on correspondent banks for African Currency Transactions

Currently, African traders and their local banks rely on correspondent banks, often located in the US and Europe, to facilitate payments between two African currencies, with the majority of these transactions conducted in dollars and occasionally in euros.

Importers, including oil marketers and manufacturers, have raised concerns about the significant disparity between the demand and supply of US dollars. As a result, they have resorted to purchasing dollars in large quantities and at rates significantly higher than the official exchange rate.

This dollar shortage has strained relationships with suppliers, especially as competition for raw materials intensifies due to increased demand and ongoing supply chain challenges. Last year, the Kenya Association of Manufacturers highlighted the detrimental impact of the dollar crunch on their operations.


Kenyan President William Ruto’s call for African countries to ditch the Dollar in favor of alternative payment solutions, such as the Pan-African Payments and Settlement System (PAPSS), highlights the growing desire for economic independence among African nations. The reliance on correspondent banks for African currency transactions, often in dollars or euros, has led to challenges and inflated costs for importers.

By embracing PAPSS and reducing dependency on the dollar, African countries can strengthen economic autonomy, foster regional integration, and mitigate risks associated with external economic fluctuations. While the transition will require careful coordination and planning, it holds the potential to promote stability, enhance intra-African trade, and pave the way for a more prosperous future for the continent.

Also Read: Japan lifts stablecoin ban: Banks Gear Up for Digital Currency Adoption.

Tags: African_countriesDollar
Tweet54SendShare15
Previous Post

Japan lifts stablecoin ban: Banks Gear Up for Digital Currency Adoption

Next Post

Anticipating the Unveiling: What’s in Store for the 15-inch MacBook Air

Reshab Agarwal

Reshab is a tech-enthusiast who likes to write about all things crypto. He is a Bitcoin bull and believes in a decentralized future of finance. Follow him on Twitter for more!

Recommended For You

160 Boeing Aircraft Ordered by Qatar in Trump-Led Trade Agreement

by Thomas Babychan
May 15, 2025
0
160 Boeing Aircraft Ordered by Qatar in Trump-Led Trade Agreement

President Donald Trump’s visit to the Gulf has resulted in one of the largest commercial aviation deals in history, as the Emir of Qatar, Sheikh Tamim bin Hamad...

Read more

Top CEOs Join President Trump for High-Profile Dinner with Saudi Crown Prince

by Thomas Babychan
May 15, 2025
0
Top CEOs Join President Trump for High-Profile Dinner with Saudi Crown Prince

During his recent visit to the Middle East, U.S. President Donald Trump held a high-level dinner in Saudi Arabia that brought together some of the most influential business...

Read more

Trump Pushes Back on Apple’s India Manufacturing Plans, Urges Focus on U.S. Production

by Ishaan Negi
May 15, 2025
0
Trump’s “Liberation Day” Tariffs See Last-Minute Adjustments: 14 Countries Hit with Slightly Higher Levies

In a surprising and politically charged statement, former U.S. President Donald Trump has criticized Apple CEO Tim Cook over the tech giant’s growing manufacturing footprint in India.

Read more
Next Post
Anticipating the Unveiling: What’s in Store for the 15-inch MacBook Air

Anticipating the Unveiling: What's in Store for the 15-inch MacBook Air

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?