As I listened to one African’s perspective on the financial system in Africa (July 2023), I couldn't help but feel a sense of outrage. The fact that apparently only a small fraction of Africans are even aware of the biggest problem with their financial system is a tragedy.
The US dollar's supremacy seems like it has been devastating for Africa, making Africans feel like slaves to the currency. The global economic system has been built so that Africans depend on the dollar, they need it in order to operate, and this dependence has led to a debt crisis that Africans will never be able to escape unless they de-dollarize their economies.
It's frustrating to think that the world talks so much about democracy, yet the US dollar operates like an unaccountable, narcissistic king. Despite all the talk about sovereignty and democracy, Africa had no choice but to accept the dollar as the world reserve currency. Africans were never given an overview of how the financial system would work, and now they are trapped in a debt hole that they may never fill.
The global banking system was built to serve the West not Africa. The democracies in Africa depend on debts from foreign banks, and these debts come with strings attached. They are told to change their national regulations in order to get loans, and in return, they lose more value than the dollars they are getting in loans. And to make matters worse, whenever Jerome Powell turns on the money printer, the entire continent of Africa suffers via inflation.
It seems clear that the US dollar's supremacy has been very bad for Africa, and it's time for Africans to find a solution. They need a currency for the people, by the people, that is not controlled by one government, one central federal reserve, or one autocratic government. They need a currency that allows all Africans to play equally and have fair opportunities.
The rise of cryptocurrency and new technologies may be a big part of the solution we are looking for, and it's encouraging to see that the Kenyan Central Bank is asking Kenyans to present discussion papers on how we can leverage cryptocurrencies and blockchain to enhance their financial infrastructure.
There is hope for Africa, but Africans need to act fast. They need to educate themselves on the financial system and demand change. They need to find a way to break free from the debt hole and create a better future for themselves and future generations.
I am an American. I wouldn’t be alive if not for America’s existence. But, yes, Africans need to free themselves from the US Dollar. It’s clear to me.