Different currencies on the one hand and the US dollar on the other are obstacles when making payments for goods and services in Africa. Kenyan President William Ruto is encouraging his counterparts to join the Pan-African Payments System (PAPSS).
Kenyan President William Ruto has called on his African counterparts to stop using the US dollar in local payments. He made the comments on Monday in Nairobi while addressing the African Private Sector Dialogue on the African Continental Free Trade Area. Ruth said:
“We all have difficulty making payments for goods and services from one country to another because of different currencies. And in the middle we are all exposed to a dollar environment.”
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The President urged his continental counterparts to mobilize central and commercial banks to join the Pan-African Payments and Settlement System (PAPSS).
Launched in January 2022, PAPSS is a centralized payment and settlement network for intra-African trade in goods and services.
dr Tumi BB Senokoane, a professor at the University of South Africa, told rtthat creating a currency for all of Africa is “not an impossible task”. Ruto added:
“The idea behind the de-dollarization of the currency is that Africa wants to rely on its own currency to buy and exchange goods and also to build up reserves for Africa as a continent. The idea is a common currency for Africa, used by central banks in Africa.”
In the course of the rapid economic growth of the emerging countries, the global economic importance of the USA continues to decrease. It seems only a matter of time before the US loses its economic and political supremacy on a global scale.
This process is being reinforced by the American economy’s tendencies to isolate itself, which are increasingly calling into question the role of the United States as advocate of a supposedly liberal world economic order and champion of globalization.
These developments raise the question of whether the US dollar can and should continue to function as the reserve currency in the international goods and financial markets.
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