Kenyan President William Ruto has once again called on African countries to consider using their respective currencies instead of the U.S. dollar for cross-border transactions. Ruto emphasized that Africa already has a mechanism in place, through Afreximbank, to facilitate seamless settlement between traders. His latest remarks come in the context of African nations, including Kenya, experiencing shortages of dollars. Ruto believes that relying on the U.S. dollar exacerbates the challenges posed by different currencies in intra-African trade.
Ruto clarified that his stance is not against the U.S. dollar itself, but rather a desire for more unrestricted trade. He questioned why Kenyan and Djibouti traders should be obligated to settle transactions using the greenback when purchasing goods from each other. He suggested that trades within Africa should be conducted using local currencies.
Internet freedom advocate and entrepreneur Kimdotcom expressed concern about the potential consequences for the United States if more countries were to follow Ruto’s call. He suggested that as more nations reject the U.S. dollar as a reserve currency, the U.S. government would face higher costs in terms of money printing and inflation.
Frequently Asked Questions (FAQs) about de-dollarization
Q: What is the stance of Kenyan President William Ruto regarding cross-border transactions and the use of the U.S. dollar?
A: Kenyan President William Ruto urges African countries to consider settling cross-border transactions with their respective currencies instead of the U.S. dollar. He believes that Africa already has a mechanism in place, through Afreximbank, for seamless settlement between traders. Ruto’s intention is to promote more unrestricted trade and address the challenges caused by different currencies in intra-African trade.