Kenyan President William Ruto echoed BRICS sentiments recently calling for Africa to ditch the US dollar and trade in local currencies, including the Shilling. Ruto delivered a speech in the Kenyan parliament urging Africa to put local currencies ahead and not the US dollar. The President indicated that the Kenyan Shilling will be used to settle cross-border transactions within Africa to end dependency on the US dollar.
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Ruto’s speech was met with a standing ovation by lawmakers who agreed to give prominence to the Kenyan Shilling currency. The President is using the playbook of BRICS by pushing the Kenyan Shilling ahead of the US dollar.
Months after the de-dollarization push, the Kenyan Shilling has outperformed the US dollar in March 2024 by a large margin. The US dollar is losing grip against the Kenyan Shilling as the local currency touched 134 in the exchange rate. The local currency is steadily climbing up the charts and trampling the US dollar on its way up. Apart from Kenya, BRICS countries like India and China are also outpacing the US dollar this week.
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BRICS members the Indian Rupee and the Chinese Yuan performed slightly better than the US dollar this month. The development is adding pressure on the USD as local currencies are gaining strength in the international markets.
BRICS: Why Is Kenyan Shilling Rising & US Dollar Falling?
Kenyan citizens are breathing a sigh of relief as the nation was gripped with high inflation and corruption. Ruto’s radical economic and administrative shift is driving the Kenyan Shilling up and the US dollar down. Additionally, the country is spearheading BRICS ethics and is strengthening the Kenyan Shilling and ending reliance on the US dollar.
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Read here to know how many sectors in the US will be affected if BRICS and Kenya end accepting the US dollar for trade. If Kenya maintains the same economic momentum, then the USD could slide further in the charts.