The African continent is benefiting from the use of local currencies when carrying out intra-African trade, according to reports from the African Export-Import Bank (Afreximbank).
Denys Denya, Afreximbank’s executive vice president for finance, administration and banking services, said at a roadshow in the Kenyan capital Nairobi that foreign currencies, such as the US dollar, traditionally used for cross-border trade, are currently in short supply. on the continent.
“Using local currencies for trade within Africa is easier for both large and small entrepreneurs, because they don’t need to stock up on foreign currencies,” Denya said at the Intra African Trade Fair 2023 Business Roadshow.
He added that the use of local currencies has several advantages because it limits the possibility of extraterritorial sanctions by the owners of third-party currencies.
Denya said the use of local currencies also favors trade between African countries, as dollars are only needed to settle sharp differences in trade. He stressed that intra-African trade is made possible by the Pan-African Payment and Settlement System, developed by Afreximbank and owned by African central banks.
Afreximbank is a pan-African multilateral trade finance institution, created in 1993 and headquartered in Cairo, Egypt. According to the bank’s website, its aim is to stimulate a consistent expansion and diversification of African trade, so as to rapidly increase Africa’s share in global trade. [Da Redazione InfoAfrica]
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