By Enyichukwu Enemanna
Kenyan President William Ruto has called on African nations to shift away from using the US dollar for intracontinental trade and opt for the use of local currencies for the purposes of buying and selling.
President Ruto emphasized that the African Export–Import Bank (Afreximbank) has provided a mechanism which provides traders within the continent opportunity to engage in trade using their respective local currencies.
Addressing the parliament in Djibouti, President Ruto highlighted the need for less reliance on the use of US dollar for trade transactions between Djibouti and Kenya.
At the moment, traders in Djibouti and Kenya have to acquire US dollars when engaging in trade between the two countries.
President Ruto questioned the necessity of involving the US currency in the trade activities between the two nations.
Afreximbank facilitates the settlement of payments in local currency, making it possible for traders to conduct transactions in a more seamless manner.
The President expressed Kenya’s support for the Pan-African payment and settlement system, which is spearheaded by Afreximbank.
President Ruto questioned the rationale behind purchasing goods from Djibouti and paying for them in US dollars, insisting that there is no reason for it.
The Kenyan President clarified that the intention is not to oppose the US dollar, but rather to promote the ease of doing business.
He suggested that purchases made from the United States can still be settled in US dollars, while transactions with Djibouti can be conducted using local currencies.
The president expressed commitment to fostering greater economic integration within Africa and reducing reliance on external currencies for regional trade.
