Journalist Observation | US Dollar Hegemony Harms Economy Kenya Inflation Severely Currency | Country | Reporter
Recently, the exchange rates of multiple currencies in Africa against the US dollar have continued to weaken. With the soaring prices of imported goods, inflationary pressures have intensified in African countries, leading to an increase in the cost of living. The Kenyan government is currently taking various measures to reduce its dependence on the US dollar. Kenyan President Luto has repeatedly delivered speeches in international settings, calling for African countries to adopt their own currencies for settlement.
Nairobi resident: We used to have money to do other things, such as having some entertainment activities with friends after work, but now we can't.
Nairobi resident: I think the cost of living is already very high and very difficult for most people.
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Many African countries rely heavily on imports for food and crude oil, and the Federal Reserve's interest rate hikes have driven up the strength of the US dollar, directly pushing up the import costs of these essential goods. Many African countries, including Kenya, have recently faced difficulties such as a shortage of the US dollar, currency depreciation, and high inflation. In recent months, some Kenyan companies from different industries have expressed difficulty in obtaining sufficient US dollars to make payments to overseas suppliers. Some Kenyan traders have even stated that they have had to reduce their business scale due to this impact.
Call on Kenya to take measures to "de dollarize" local currency settlement
Kenyan President Luto recently stated that African integration requires the free flow of people and goods, and the "soul" of free trade is the settlement method, which cannot be constrained by the US dollar. Starting from March this year, Kenya has decided to officially use its local currency, the shilling, to purchase Saudi oil. In addition, the Central Bank of Kenya has begun discussing with multiple East African countries the use of domestic currency payments in international trade within the African region to alleviate foreign exchange shortages.
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Kenyan think tank South South Dialogue Executive Director Ndegwa: We have seen that many countries and regions are replacing the US dollar with different currencies, especially Brazil, Russia, India, China, and South Africa, and more countries are joining in.