Browsing: African Currencies

De-dollarise African trade

There appears to be a consensus that the world is finally turning its back on the US dollar. There are simmering shifts within the global monetary system. The shift becomes ever more apparent, best described as de-dollarisation.

The world is searching for alternatives to the US dollar, finding them more often. Thus, moving away from the dollar can no longer be stopped. For instance, early this year, Indonesia reiterated it would promote local currency settlement (LCS) in cross-border trade and investment to reduce dependence on the US dollar.…

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Over 46 African nations are feeling the coronavirus pandemic pinch, and much more scenarios are unveiled as days go.

Mandatory curfews are some of the measures being rolled out in East Africa (Kenya, and Uganda), Tanzania’s with hotels running low on customers and even considering a  possible shut-down. The tourism industry is slowing down too.

However, the COVID-19 could also cause serious trouble, within economic lines for Africa, as the world economy hangs in the balance.

According to information from Bloomberg, the fear of the pandemic could trigger investors to exit markets.

Few emerging-market currencies have been spared as the spread of the coronavirus causes investors to dump riskier assets and the dollar to surge. But Africa has been hit harder than most — and the signs are there’s worse to come.

Kenya’s shilling, Angola’s kwanza and Zambia’s kwacha have all fallen to record lows this month. Ghana’s cedi and …