African states to trade in local currencies under AfCFTA
African states will be able to trade in their local currencies for intra-Africa trade under the African Continental Free Trade Area (AfCFTA) agreement, an official said. Wamkele Mene, secretary-general of the AfCFTA Secretariat told journalists in Nairobi that the trading bloc is working with the African Export–Import Bank (Afreximbank) to establish a payment and settlement platform to eliminate the need for currency convertibility. "When the platform is fully operational, African companies will be able to transact with their counterparties in other Africa countries in their local currencies," Mene said. Mene noted that the payment and settlement platform is currently being piloted amongst six African countries and will be rolled out across the continent by the end of 2021. "The aim is to deal with the administrative burden cost of converting local currencies," Mene added. According to the AfCFTA Secretariat, there are 42 currencies in the continent and this remains a constraint to intra-Africa trade due to the need to use international currencies for trade.
Source: Xinhua
Africa
More African nations seen tapping G20 debt plan on revenue drop
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