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    Distrust in national currencies halts Africa's de-dollarisation

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    Despite clear reasons for de-dollarisation, African leaders struggle to convince residents to embrace national currencies.

    Confidence in a currency wanes when central banks print money excessively to pay debts and obligations.

    During the anti-dollar hype of 2023, Kenyan President William Ruto questioned the need to settle trade in U.S. dollars.

    Ruto's remarks echoed longstanding concerns about dollarisation in the Global South.

    Historically, the U.S. dollar’s dominance wasn't widely seen as a threat despite occasional criticisms.

    The U.S. use of the dollar to sanction Russia post-Ukraine invasion led to a push for alternatives.

    Many countries advocated for a BRICS currency to challenge the U.S. dollar.

    By late 2023, expectations were high for BRICS to launch a rival currency.

    BRICS’s failure to provide a clear roadmap for a new currency disappointed many.

    This led countries to continue engaging with Bretton Woods institutions like the IMF and World Bank.

    These countries still rely on a U.S.-dominated financial system and abide by Washington's rules.

    Creating a currency to rival the U.S. dollar is a complex task, not easily achieved.

    The U.S. dollar remains preferred due to the stability and value it offers compared to many local currencies.

    Persistent high inflation in African countries undermines confidence in local currencies.

    Citizens often choose to transact in U.S. dollars due to its reliability as a store of value.

    Overprinting money by central banks leads to inflation and erodes trust in national currencies.

    Confidence is crucial for a currency’s survival; without it, currencies fail.

    Some African countries have banned foreign currency use domestically but with limited success.

    Banning foreign currency often drives transactions underground, harming local economies.

    Ethiopia, initially supportive of a BRICS-backed alternative, recently abandoned such measures.

    Until African countries manage currencies better, residents will favor the U.S. dollar.

    Traders demand U.S. dollar payments due to perceived volatility in local currencies.

    African economies will continue to struggle without better currency management practices.

    Enhancing economic management is key to reducing reliance on the U.S. dollar.

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