Kenyan President William Samoei Ruto has called upon African nations to shift away from using the US dollar for intracontinental trade.
During his recent address at the Djibouti parliament, President Ruto highlighted the need to abandon reliance on the US dollar for trade transactions between Djibouti and Kenya, Today News Africa reported.
Currently, 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.
President Ruto emphasized that the African Export–Import Bank (Afreximbank) has provided a mechanism that enables traders within the continent to engage in trade using their respective local currencies.
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 administered by Afreximbank.
President Ruto raised the question of why it is necessary to purchase goods from Djibouti and pay for them in US dollars.
He stressed that there is no valid reason for this practice. The President clarified that the intention is not to oppose the US dollar, but rather to promote more unrestricted trade.
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.