The post Lack Confidence National Currencies Affects De-Dollarization Africa appeared on BitcoinEthereumNews.com.

Despite clearly articulating reasons for de-dollarization in Africa, African leaders will struggle to convince citizens to embrace national currencies without changing economic management practices.  People often lose confidence in a currency when a central bank excessively prints money to pay debts and other obligations. De-Dollarization Hype Not Backed by Practical Action Sometime in 2023, during the peak of anti-dollar hype, Kenyan President William Ruto questioned why his country and Djibouti still had to settle trade in US dollars when they had their currencies.  For Ruto, it made no sense that the two countries’ traders had to use the greenback when the United States itself was not in any way involved in the trade. Although the Kenyan President’s poignant remarks were applauded by many, particularly in the so-called Global South, he is not the first to make this observation.  In fact, many had been questioning this arrangement, also known as dollarization, for years, but it never gained enough interest or forced politicians to reevaluate it.  The US dollar hegemony was never widely seen as a threat, even as a few small countries were highlighting Washington’s apparent use of the currency’s dominance to achieve political goals. However, when the U.S. took the bold step of using the dollar’s dominance to punish Russia after its invasion of Ukraine, suddenly there seemed to be a consensus among countries that Washington was weaponizing its currency.  For countries fearing they might be the next target, advocating for an alternative to the dollar or de-dollarization became the logical course of action. As global media reports attest, many countries and opponents of a U.S. dollar-dominated financial system were (and still are) advocating for the BRICS bloc to launch a currency that rivals the greenback. In fact, toward the end of 2023, many expected the bloc to finally roll…

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Filed under: News - @ August 8, 2024 2:22 am