Cetoex news – Kenya’s President William Ruto urged African countries to stop trading with the U.S. dollar for cross-border transactions. Ruto questioned the use of the dollar for global trade and asked African nations to pay with local currencies instead. The President stressed that Kenya has no reason to pay with the U.S. dollar for trade between African nations. The speech with lawmakers was met with applause at a time when 30 nations are looking to join the BRICS alliance.

The Kenyan President said that Africa must promote local currencies for payments among themselves during trade and not the USD. The aim is to strengthen local currencies and help African economies and businesses to sustain themselves in the long run.

BRICS: Stop Trading With The U.S. Dollar For Global Transactions, Says Kenyan President

Ruto confirmed that the African Export-Import Bank (Afrexim) is building a platform that will allow traders to settle payments with local currencies. The payment integration will be made with native currencies during cross-border trade among African nations.

The President said that he is not against the U.S. dollar but will trade in the USD while doing business with America. “We are not against the U.S. dollar, we just want to trade much more freely. Let us pay with the dollar what we are buying from the U.S. Let us pay with our currency what we are buying from Djibouti.”

He added, “Why is it necessary for us to buy things from Djibouti and pay in dollars? There’s no reason. If we are selling from Kenya to Djibouti, we have to look for U.S. dollars. How is the dollar part of the trade between Djibouti and Kenya?”

Countries around the world are expressing their interest to join the BRICS alliance. Kenya is among the nations that plan to enter the BRICS bloc and accept the new currency for international trade. If the new BRICS currency is accepted by the majority of the countries, the U.S. dollar could be badly hit.

NEWS BY – CETOEX NEWS

Cetoex News – Is the US dollar losing it’s privileged status as the world’s reserve currency? Barron’s reported that both China and Brazil have undergone discussions and decided to trade in their own country’s currency. These are seemingly calculated moves by Brazil and China, both which are BRICS nations.

The new deal will allow China and Brazil, both top rivals to the US economy, to execute trade and financial transactions directly with one another, exchanging yuan for reais instead of going through the US dollar.

What is the purpose of BRICS nations?

The BRICS nations of Brazil, Russia, China, India, and South Africa are said to have joined together as an emerging market force. A Goldman Sachs economist by the name of Jim O’Neill once predicted that these economies would dominate the world by 2050.

As BRICS was originally formed for investment opportunities, are a few of these countries now preparing to overthrow the US dollar, emerging as the next global superpower? We can only imagine this has been in the works for a while.

Brazil and China now leave the US dollar behind

The Brazilian Trade and Investment Promotion Agency said in a statement: “The expectation is that this will reduce costs..promote even greater bilateral trade and facilitate investment.”

A record $150.5 billion in bilateral trading happened between China and Brazil last year, while China already has similar setups with Russia, Pakistan, and other countries. Now that a deal has been reached that bypasses the US dollar in trading, questions still remain.

Within the digital payments and blockchain communities, people will be closely watching how countries are doing business with one another and how long it takes currencies to settle. Spectators will also pay attention to what technologies will be used to quickly settle transactions. If the US does not want to keep getting left behind, it should be asking some hard questions now regarding its economic, political and FinTech policies.

NEWS BY – CETOEX NEWS