The President of Kenya, William Ruto, has talked against using United States Dollar (USD) during trade between African countries.
While talking about the usage of dollars, Ruto said traders from Kenya and Djibouti are trading with the dollar when they could take advantage of the pan-African payment and settlement system (PAPSS) established by Afreximbank.
The President suggested that African countries should trade with currencies on the continent rather than relying on US legal tender, as traders often have to look for dollars to complete transactions.
The president talked about the dollarization of the African market during his recent address at the Djibouti parliament.
According to Ruto, giving priority to local currencies ahead of the dollar during trading between two African countries will ease trade.
He said: “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 during his speech.
He further stated that Kenya is embracing the Afreximbank payment system to ease trade: “That is why Kenya champions the Pan African Payment and Settlement System that is done by our own institution — the Afreximbank.
“Why, members? Why is it necessary for us to buy things from Djibouti and pay in dollars? There is no reason.”
Ruto said he isn’t against the use of the dollar for business transactions, but the dollar should be limited to US trades.
“We are not against the US dollar. We just want to trade more freely. Let us pay in US dollars what we are buying from the US. But what we are buying from Djibouti, let’s use local currency.”
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