- With tightening monetary policies globally, many African economies are struggling with falling forex reserves.
- Low reserves have sent governments back to the drawing board strategising on how to survive future trends while balancing trade.
- With this, leaders and policymakers in Africa are engaging in the de-dollarisation conversation.
Kenya has sent a strong message to economies in Africa on the need to accelerate dedollarisation of cross-border trade, further amplifying the global conversation on reducing reliance on the US dollar as the main mode of payment.
For over a decade, China and Russia have sought to drastically lower their usage of the US Dollar in what is commonly referred as “dedollarisation”.
This is in a move intended at shielding their economies from possible trade-limiting US sanctions. The strategy also reduces their exposure to adverse effects of US economic and monetary policy, while also asserting global economic leadership.
China, Russia slowly cutting dollar
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