[The African Monetarist]

The Pan-African

Payment and

Settlement System

(PAPSS).

 

 

 

 

Did you catch the latest? Brace yourself for a #market game-changer in 2024.

 

The Pan-African Payment and Settlement System [PAPSS] is gearing up to revolutionize cross-border #payments in #Africa!

 

Say goodbye to the hefty expenses associated with such transactions. African #governments are making strides to settle trade and #continental #commerce in local currencies, resulting in the #PanAfricanPaymentandSettlementSystem.

 

African countries find themselves vulnerable in the international currency market for three primary reasons!

 

Firstly, due to the relatively small size of their economies, they heavily rely on #global #trade.

 

Dominated by exports like #oilandgas, #minerals, ati #cashcrops, and importing various goods, #African nations lack significant influence in setting #international #monetary prices, making them “price takers” in the #world #markets.

 

With major trade partners, including #US, #EU & #China, dictating terms, Afirika countries are exposed to fluctuations in world market prices, especially since these prices are denominated in major reserve currencies like the US #Dollar, #Euro, #Yen, and #Renminbi. Secondly, the proportion of “intra-African” trade remains relatively low compared to total trade, limiting #regional #economic resilience.

 

Lastly, the widespread use of the dollar in international transactions, even among African countries, underscores the limited direct exchangeability of African #currencies, from the Nigerian #Naira, #Kenya Shilling, to the #SouthAfricanRand. This reliance on the dollar further amplifies the exposure of African nations to global market movements. What are your thoughts on these factors shaping Africa’s position in the international #currency landscape?

 

 

[Onkọwe]

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