And you think Africans have the capacity if availing clean drinking water is an issue yet we have rivers, lakes and springs all over?
If drinking water pekee, a basic need, is an issue, do you think our corrupt leaders would be able to put a coherent monetary institution to deal with the vacuum left behind? FYI, Europe had an ERM for 20 years before they were able to put up something common. Now imagine Africa with our clumsiness? Y’all middle class folks are out of touch with reality completely to the point simple stuff evade you.
Shifting goalposts. So from your erroneous nonesense that dedollarization is bad for Africa, you’ve now switched to exim bank doesn’t really have the infrastructure to facilitate trade in local currencies? It’s a bank putting this together, you think Ruto and Samia are bankers ama what nonesense argument are you spewing.
You are deflecting lol. Why haven’t they been able to put it from way back? FYI, We don’t even have a ERM in the first place to unify the exchange rates and you think that the vacuum would be filled in easily. Stop being delusional, finance is not as easy as having sex where Africans are experts. It needs a strong framework na sio ati mnakimbia fwaa. Start with am ERM first.
Sasa hata huelewi what the plan is. No one is talking of a common African Currency. We are talking of a replacement of the swift system to facilitate payment in local currencies. Each country will still use their own currency. And this is a bank boss, they can hire consultants from anywhere in the world. Why are you so thick.
I think we are on a different wavelength here. The dollar is the common ground that allows trade to happen between say Tanzania and Kenya. Now if Tanzania buys 10 tonnes of tea and gives us the useless Tshs, tutapeleka wapi? FYI, Russia had to stop that nonsense because they were accumulating a lot of useless Rupees bila place ya kuzipeleka. Even Pakistan issued letters of credit instead of useless currency.
Jesus you are so thick. Banks and countries can buy and sell currencies back from each other.
ANd your source for the Russian bit? Sijaiskia mimi.
So Russia walikuwa wajinga in stopping the flow of Rupees or what are you trying to say? Wacha mchezo buana
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Just curious @Aka mpole who taught you to hate yourself?
What makes you come to such a conclusion? As a heads-up I don’t
“The double conversion charges cost about 2-3% of the total transaction value, which is an expensive proposition for importers and exporters of both sides. If the two sides agree, a direct rupee-rouble conversion mechanism can be established on 1:1 basis, which is close to the market rate, and which will also save hedging costs,” one of them, an expert in trade, said.
As the rupee is not fully convertible, a market-driven exchange rate for rupee-rouble is not possible (which is why it needs a so-called double conversion – rupees to dollars and dollars to roubles), but an administrative exchange rate can be derived, he added.
There’s a solution, which is what I said up there.
Weaponizing the dollar was America’s greatest mistake.
One of the central elements of the [CELLS] platform has become a digital system for making payments in national currencies, which can provide a real alternative to SWIFT in international settlements. The multifunctional system provides international payments, multicurrency transactions, user identification and storage of digital currency. Blockchain technology in combination with certified cryptographic information protection tools provide a high level of IT solution reliability.
“The digital payment system on the blockchain platform can be used as a full-fledged replacement for SWIFT, providing high speed, security and irrevocable transactions. The system will make it possible to switch to settlements in national currencies, eliminate the risk of sanctions and ensure the independence of the national financial policy for clearing participants ,” said Oleg Yevtushenko, Executive Director of Rostec Group.
The USD is 60% of world reserves.
That would have been accurate as of q2 of 2022. Whars the figure as of Q1 of 2023 and what’s the projection for Q2 2023?
The reserves dropped coz many nations zimesota…
Even if USD reserves fell, no other currency took up it’s place. USD reserves are still bigger than all other currencies combined. And then there’s the issue of debt repayment. Many countries with outsized debt are struggling to keep USD reserves because most of their USD is used to pay debt, Kenya being one of them.
The USD has become scarce due to the US anti-inflation measures so a lot of USD is being sucked from international monetary systems. It’s not that the countries reduced USD reserves willingly, they had no option but to use up their reserves to survive…
To get USD, a country has to provide products or services to the US and many countries are not meeting this requirement due to extreme competition in the markets and so on.
You are looking at only one side of the coin. Russia switched to selling its commodities in Rubles. China does its crossborder trades now more in Yuan than USD for the first time. Saudi Arabia announced this year they are accepting other currencies for its commodities for the first time ever. Brazil, Argentina and even Mexico are actively divesting from USD to other currencies. Iran is doing trades in other currencies. Venezuela is now pricing its oil in euros, yuan and rubles. Even Australia signed a bilateral agreement with China to do their trades in local currencies. South Korea and Indonesia last month announced a bilateral agreement to use their local currencies. You can’t keep burying your head in the sand and pretend countries are not actively responding to the threat of having their USD reserves frozen… And it’s a trend that will continue.
These trade agreements are mainly for government to government transactions. If a person in Singapore wants to buy a car from China, they’d have to use USD. Our government said it had an agreement with Saudi to buy oil in Kshs. However, you as an individual businessman can’t buy shiet in Saudi using Kshs…
Most trade partners won’t accept other currencies outside the USD and maybe EUR… My point is that many Nations especially with oil are starting to accept other currencies because their customers don’t have the required USD reserves in the first place and they want to continue selling their products. The reserves have not fallen simply because nations are averse to the USD but simply because they need the USD but don’t have the USD. Moving to other currencies like the Yuan is only going to create more problems coz the Yuan is not that stable to start with. The trading in other currencies is a temporary solution to a permanent problem
Biden you have only one job. To keep the dollar as the international trade currency
Keep burying your head in the sand. You can cope all you want. It doesn’t change the tectonic shifts being actively put in place around the world. Myself and sambamba predicted this last year when the Russian sanctions were announced. And we predicted it would backfire badly on the west. Germany which I predicted would be the obvious first casualty is in recession. Let’s watch and see how they respond and how their vassal states in the EU respond. I see the talking heads in Brussels have started lying to the EU countries’ citizens that shrinking economies are good for them. Let’s keep an eye on Brussels and their new degrowth “strategy”.
The number of countries that are applying to join BRICS is ever increasing. The number of countries seeking to trade in alternative currencies is ever increasing. Let’s keep watching.
Will Russia sanctions dethrone ‘King Dollar’? | Business and Economy | Al Jazeera