Africa's Push for Local Currency Payments Amidst Dollar Dominance Concerns

The Challenge of Dollar-Dependent Trade

• 🌍 Africa faces significantly higher trade costs due to reliance on dollar transactions and correspondent banking relationships.
• 💰 The current system makes trade between African countries up to 50% more expensive than the global average, with individual deals costing 10-30% of their value.

PAPSS: A Solution for Local Currency Payments

• 💡 The Panaffrican Payments and Settlement System (PAPSS) aims to facilitate trade using local currencies, bypassing the need for dollars.
• 🚀 PAPSS, launched in 2022 and operational in 15 African countries, could slash transaction costs to as low as 1%.
• ✅ This system allows businesses to pay and receive payments in their own respective currencies, simplifying cross-border commerce.

Global Context and Trump's Stance

• 🌐 The African initiative mirrors a broader global trend, including efforts by China and Russia, to develop financial systems independent of Western institutions.
• ⚠️ However, the movement away from dollar dominance has drawn aggressive reactions from former President Trump, who is determined to maintain the dollar's global trade status.