Kenyan President William Ruto has voiced his opposition to the utilization of the United States Dollar (USD) in African trade, specifically between Kenya and Djibouti. He has urged traders to take advantage of the pan-African payment and settlement system (PAPSS) developed by Afreximbank instead. Ruto argues that African nations should prioritize trading with their own currencies rather than relying on the US dollar, which often leads to the inconvenience of searching for dollars to complete transactions.
During his speech at the Djibouti parliament, Ruto criticized the prevalence of dollarization in the African market and questioned why US dollars are necessary for trade between Djibouti and Kenya. He highlighted Kenya’s support for the Afreximbank payment system, emphasizing its role in facilitating smoother trade. Ruto clarified that he does not oppose the use of the dollar for business transactions, but he believes it should be limited to US trades.
The President’s main argument is centered around the idea of promoting local currencies and easing trade within the continent. Ruto emphasized that there is no reason for Kenya to purchase goods from Djibouti using US dollars, advocating for the use of local currencies instead.
In essence, Ruto’s stance is that while the US dollar has its place in international trade, African countries should prioritize the use of their own currencies when engaging in trade with one another. This approach aligns with his support for the pan-African payment system, which aims to foster greater financial independence and efficiency within the continent.