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Browsing: de-dollarisation
- Tanzania is growing its national gold reserve as a smart move to counter USD shortage.
- Already, the country lags behind peers Kenya and Zimbabwe in gold reserve held yet its a major exporter of the precious mineral.
- Will Tanzania’s new plan be enough to counter its currency woes?
In the face of a persistent U.S. dollar shortage crisis, authorities in Tanzania are turning into gold hoarding as a potential solution. Despite being Africa’s fourth largest gold producer, accounting for 1.3 per cent of the global output, Tanzania’s gold reserves stand at an estimated 45 million ounces, which is relatively low compared to its peers. For context, Kenya holds 0.02 tonnes, Zimbabwe at 2.5 tonnes, while the world’s largest economy and issuer of the dominant dollar, boasts a staggering 8,133.46 tonnes in gold reserves. Will Tanzania’s new plan be enough to counter its currency woes?
For policymakers in Tanzania, storing value …
- Tanzania and India have agreed to trade in local currencies weaning off the use of the US dollar.
- There are advantages of using local currencies in trade versus the traditional dollar.
- Tanzania and India have also agreed on military, maritime, and space technology cooperation.
India’s Ministry of Foreign Affairs Secretary Dammu Ravi has met with Tanzania’s President Samia Suluhu Hassan with reports emerging that the two leaders have among other things, agreed to trade in Rupees, the sub continent’s local currency.
The decision implies that the two countries, with long-running business ties, will effectively wean off using the king dollar as their ‘gold standard’, instead embracing the Indian Rupee as their common currency in exchange for value.
“When international transactions are denominated in local currencies, countries can avoid currency fluctuations and the associated risks. This stability helps to mitigate exchange rate volatility, reducing uncertainty and facilitating more accurate planning …
In May 2023, Zimbabwe released a gold-backed digital currency for peer-to-peer and business transactions. It acted as a store of value as the Zimbabwean dollar continued its steep depreciation. International gold prices controlled by the London Bullion Market Association will dictate the local pricing of Zimbabwe’s digital currency tokens.…
- The prospect of establishing a common currency will be a top agenda at the upcoming BRICS Summit in Durban, South Africa later this year.
- The Shanghai Cooperation Organization (SCO) is working towards trading in their own national currencies.
- Roughly 40 percent of international trade transactions in goods are invoiced in dollars
The prospect of establishing a common currency will be a top agenda at the upcoming BRICS Summit in Durban, South Africa later this year.
Should the common currency be formed, it will be based on a basket of the currencies of the BRICS countries; the Chinese RMB Yuan, the Russian Ruble, the Indian Rupee, the Brazilian Real, and the South African Rand.
Russian Foreign Minister Sergey Lavrov has on several occasions announced plans by the BRICS countries to unify their currencies and untangle themselves from dollar dependency.
At a media conference during his Africa tour at the start of …
