The West African Chief Operating Officer (COO) of the Afrexim Bank, Eric Intong has emphasized on the need for African countries to introduce a common local currency across Africa as against the use of the dollar.
Speaking at the University of Professional Studies, Accra (UPSA) Law School, Africa Trade Round Table 5, Mr. Intong stated that this will help check exchange rate depreciation on the continent.
He warned that failure to introduce a common currency will lead to serious challenges in the implementation of the African Continental Free Trade Agreement (AfCFTA).
According to Mr. Intong, the inability of African countries to develop a common currency to trade with increases more cost to moving goods on the continent.
Sharing his statement;
Today if I am sitting in Nigeria, and if I want to buy something from Ghana, why should I be paying in dollars? It doesn’t make sense.
If we stop paying African trade in dollars that is going to reduce the pressure on our currencies. We have made that estimate and it is $5 billion annually. This will even be more once we start operating and the data from the Pan-African Payment and Settlement System (PAPSS).
West Africa has seen grandiose projects that went nowhere. And part of the reason they went nowhere is because policies go nowhere in the absence of financing.
The AfCFTA, frankly is going nowhere in the absence of trade finances. If you don’t have trade financing, there’s no trade period.
