The Bank of Zambia (BOZ) has announced a de-dollarization plan for domestic transactions across the country. The bank aims to enforce existing laws designated to uplift its local currency, the kwacha as the sole legal tender. The plan shows that the kwacha should be the only currency for domestic transactions and not foreign currencies, including the US dollar. The move is straight out of the BRICS playbook of de-dollarization, where the US dollar is pushed to the back seat.
The BOZ is also seeking inputs from stakeholders who oppose the plan of keeping the US dollar on the back seat. After careful consideration, the BOZ will soon conclude how to uplift the kwacha in the global markets. Chances are high that the kwacha will be made the sole legal currency for domestic transactions. BRICS has inspired Zambia to ditch the US dollar and many more African countries could follow suit.
The de-dollarization agenda is accelerating in 2024 and could gain steam in this decade. The next 10 years will be challenging for the US dollar as BRICS is looking to bring the currency down from the world’s reserve status and put local currencies in the lead.
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