Sardana contends that institutions such as the International Monetary Fund and the World Bank remain largely shaped by Western interests, often advancing political priorities rather than addressing the development needs of the Global South. In this context, the dollar is increasingly viewed not just as a reserve currency but as a strategic tool that enables countries like the United States to impose sanctions and exert influence over nations that diverge from its policy positions.

Momentum for alternatives has been reinforced by reports that India’s central bank has proposed linking the official digital currencies of BRICS members to facilitate cross-border trade and tourism payments. Such a system, supporters argue, would reduce exposure to dollar-based transactions and enhance global financial stability. The idea builds on commitments made in the 2025 BRICS declaration in Rio de Janeiro, which called for greater interoperability between national payment systems.

Russian officials see local-currency trade as a way to strengthen cooperation with Zambia in sectors such as mining, energy, agriculture and infrastructure, while lowering transaction costs and reducing demand for US dollars, Lusaka Times reports.

Supporters of the idea say settling trade in domestic currencies could ease pressure on Zambia’s foreign exchange reserves, especially during periods of limited dollar liquidity. 

However, economists and financial institutions have urged caution. They warn that local-currency trade requires strong financial systems, stable exchange-rate mechanisms and clear settlement frameworks to manage risks linked to currency fluctuations.

Zambia’s economy remains closely tied to dollar-based pricing, particularly because its main export, copper, is traded on global markets in US dollars. Government officials have said any move toward local-currency trade would be guided by economic prudence, regulatory readiness and consultations with banks and businesses.

Prime Minister Anwar Ibrahim praised Malaysia’s 2025 ASEAN Chairmanship as a showcase of national unity, professionalism, and economic leadership. Speaking at the ASEAN Chairmanship Appreciation Ceremony, he thanked government staff, security forces, and even cleaning personnel for their contributions, highlighting smooth event management and cultural showcases. Anwar emphasised teamwork across races, religions, and ministries, linking success to clear policies, firm leadership, and anti-corruption measures. He stressed Malaysia’s desire to be recognised for economic management, AI adoption, and renewable energy initiatives, while also showing care for fellow ASEAN nations, including supporting Timor-Leste’s formal admission as the bloc’s 11th member.

Malaysia eyes first dollar bond sale since 2021 amid strong markets

Malaysia is considering issuing US dollar-denominated bonds this year, its first such sale since 2021, as global credit markets rally and borrowing costs ease. The Finance Ministry said it has sought proposals from banks, partly to refinance dollar bonds maturing in 2026, including a US$1 billion Islamic note due in April. The move comes as spreads on Asian dollar debt hit record lows and after Malaysia’s economy grew a stronger-than-expected 5.7% in the fourth quarter, lifting full-year growth above forecasts. However, officials expect growth to slow to 4–4.5% this year amid rising global volatility and geopolitical risks.

Tighter expatriate hiring rules set higher pay floors, tenure caps

Malaysia will revise its expatriate employment framework from June 1, 2026, tightening rules under the Employment Pass system to prioritise senior and specialist foreign talent. Minimum salary thresholds will rise sharply, with Category I roles requiring at least RM20,000 a month, while Category II and III posts face higher, more clearly defined pay bands. New limits will also cap expatriate tenure at up to 10 years for senior roles and five years for junior categories. The government says the changes address salary compression with local professionals and aim to strengthen skills transfer, succession planning and the progression of Malaysians into leadership roles.

Malaysia’s king urges unity, prioritises national interest amid autonomy debate

Malaysia’s King Sultan Ibrahim Sultan Iskandar urged lawmakers to prioritise national interests over state rights, calling for unity, restraint and maturity in resolving political differences. Addressing parliament on January 19, he said any education system seeking recognition must use the Malay language and reflect Malaysia’s history. He reaffirmed respect for state rights but stressed they must not override the country’s collective interests, citing the 1963 Malaysia Agreement as a foundation for cooperation between states and the federal government. His remarks come amid renewed autonomy demands from Sabah and Sarawak, and follow a court ruling ordering the federal government to settle Sabah’s long-disputed revenue share.

Laos, Thailand, Malaysia advance ASEAN power grid with cross-border deal

Laos, Thailand and Malaysia have signed a new electricity transmission agreement under the Laos-Thailand-Malaysia–Singapore Power Integration Project, marking a step forward in ASEAN’s regional energy integration. The deal enables the cross-border transmission of 100 megawatts of electricity from Laos to Singapore via existing power networks in Thailand and Malaysia, over a two-year contract period. Signed in Bangkok on Jan 14 by state power utilities from the three countries, the agreement advances the ASEAN Power Grid initiative, aimed at strengthening energy security, improving resource efficiency and supporting sustainable economic growth through regional electricity trade.

China’s exports have stayed firm overall, rising 8.3% in September from a year earlier, but shipments to the US plunged 27%. Electric vehicle exports doubled, yet retail sales grew only 3% and spending during the Golden Week holiday was “mildly disappointing,” analysts at Morningstar said.

Residential sales fell 7.6% in the first nine months of the year, and S&P expects new home sales to drop a further 8% in 2025. Economists expect a central bank rate cut by year’s end as authorities look for ways to revive demand.

Across the Pacific , the US faces its own strain. The national debt has topped $38 trillion for the first time, as a government shutdown leaves hundreds of thousands of federal workers unpaid and delays key spending decisions.

“Reaching $38 trillion in debt during a government shutdown is the latest troubling sign that lawmakers are not meeting their basic fiscal duties,” said Michael Peterson of the Peter G. Peterson Foundation. 

The debt has climbed from $34 trillion in January 2024, an unusually fast pace. The Trump administration says it is tightening spending and cutting the deficit. Treasury data show a $468 billion shortfall from April to September, the lowest since 2019. 

But with voter concern about debt rising, and China’s growth slowing, both superpowers head into APEC under pressure to prove they can keep their economies — and their rivalry — under control.

Currency losses push up the price of imported essentials from food and fuel to fertiliser, denting living standards.

Nigeria's naira has fallen by over 30% in 2025, following a Central Bank decision to float the currency and remove fuel subsidies, moves that spiked inflation and the cost of living. Today, it trades at approximately ₦1,500 per dollar.

The Malawian kwacha has collapsed by nearly 40% over the past year, reaching around MWK 1,700/USD, deepening economic hardship in an agriculture-dependent, import-reliant economy. Malawians now face fertiliser costs that are five to seven times higher than just two years ago, a disaster for farming communities already stretched by economic and climatic shocks. The African Exponent

Other currencies like the Rwandan franc and Congolese franc have depreciated by approximately 19% and 17% , respectively, driven by struggles in export capacity, political instability, and import dependence.

Meanwhile, the South African rand remains volatile, recently flirting with multi-month lows around ZAR 19.40/USD. Although linked to bleeding investor sentiment, the rand has not collapsed entirely, thanks to gold prices and occasional policy support.

What’s causing the crisis?

Many African nations owe large sums in USD. As local currencies lose value, servicing that debt becomes exponentially more expensive, leaving little flexibility for governments already contending with rising inflation and budget shortfalls.

Several economies export largely raw materials but then import finished goods, often priced in dollars at significantly higher costs. That imbalance puts extreme pressure on currencies, especially when global demand softens.

In times of global uncertainty, whether due to rising U.S. interest rates, geopolitical shifts, or local political instability, investors withdraw funds. This capital flight quickly drains local currency reserves and triggers sharp depreciation.

Many central banks also do not have enough dollar reserves to cushion their currencies during market stress. Without this buffer, even modest shocks can cascade into deeper crises.

Some central banks have responded with sharp interest rate hikes (e.g., in Nigeria, Angola, Egypt), while others, like Kenya or South Africa, have taken a more cautious approach. The inconsistent policy responses can further unsettle markets

Beyond the economics, the crisis has social ramifications: disillusionment is rising, and protest movements are gaining traction as youth struggle to find employment in a shrinking economy

Can the dollar’s grip be weakened?

Some countries are exploring alternatives to dollar-dominated trade. For example, Kenya has started using a Pan-African Payment and Settlement System (PAPSS) to enable intra-African trade in local currencies, an initiative aimed at reducing dependence on foreign exchange.

The African Development Bank also projects further currency declines in 2025 across 21 nations, while noting that a few like Kenya, Morocco, and the CFA franc zone may see modest appreciation.

While depreciation might eventually benefit exporters, it is causing harm to wages, prices, and household security today. Efforts to de-dollarize trade and finance are promising, but current momentum shows most economies remain tethered to U.S. monetary moves for better or worse.

Officials say the shift is meant to make trade easier, protect Ethiopia’s interests, and reduce risks linked to relying on a single currency.

State Minister of Finance Eyob Tekalign said Ethiopia has already made arrangements with some countries, including the United Arab Emirates, to carry out trade using their own currencies.

Ethiopia, like many developing nations, faces challenges related to foreign currency shortages. By using a wider range of currencies, the government hopes to improve its trade balance, lower costs, and attract more investment.

The move comes at a time when some other countries, especially in the Global South, are also exploring alternatives to the US dollar in response to economic pressure and shifting global alliances.

The image used for this article was AI-generated.

The move is part of a push by both countries to reduce exposure to exchange rate risks and transaction costs tied to the dollar. “The agreement will create a better environment for financial cooperation by supporting the use of local currencies in current account transactions and direct investment,” the PBoC said in a statement.

During his visit, Premier Li expressed China’s commitment to advancing bilateral trade and unlocking new areas of economic growth. “China is willing to work with Egypt to optimize bilateral trade and create new drivers of economic growth,” he said.

Pan Helin, a member of the Expert Committee for the Information and Communication Economy under China’s Ministry of Industry and Information Technology, said the MoU marks “a new milestone” in financial cooperation. “As Egypt diversifies its foreign exchange sources and the Renminbi becomes more prominent in international payments, this cooperation will help both countries reduce reliance on the dollar,” Pan told the Global Times .

So, how did the dollar become this powerful? And what does it mean for countries that depend on it every day, even for transactions between neighbouring nations?

Finance Minister Sri Mulyani Indrawati announced a 2026 growth target of 5.2% to 5.8%, higher than this year’s goal and forming a base for President Prabowo’s 8% long-term target .

Key forecasts in the KEM-PPKF include:

She emphasised the need to navigate global uncertainties while maintaining purchasing power and price stability.

Ride-hailing drivers in Indonesia hold protests to demand better pay

Hundreds of taxi and delivery drivers protested across Indonesia on Tuesday, demanding higher wages and opposing a potential merger between GoTo and Grab. In Jakarta, drivers in green jackets rallied near government offices, accusing companies of exploitative practices. Many earn just 100,000–150,000 rupiah ($6–$9) for 10–12 work hours. GoTo, which operates Gojek, welcomed driver feedback, but lowering fare commissions wasn't the answer. It confirmed receiving merger proposals but stressed no decision had been made.

6 military figures enter strategic economic positions in Prabowo era

President Prabowo Subianto continues placing military figures in strategic economic roles , most recently naming Lt. Gen. TNI Djaka Budi Utama as the new Director General of Customs and Excise, replacing Askolani. Djaka previously served as Main Secretary of the State Intelligence Agency (BIN) and is a former member of the Mawar Team. The move adds to a growing list of military appointments in ministries and SOEs under Prabowo’s administration. Earlier, Maj. Gen. TNI Novi Helmy was made President Director of Perum Bulog, replacing Wahyu Suparyono. Novi is expected to resign from active duty following his appointment.

Indonesia projects weaker rupiah at Rp16,900/USD in 2026

The government has submitted its 2026 Macroeconomic Framework (KEM-PPKF) to Parliament, projecting the rupiah to weaken to Rp16,500–Rp16,900 per USD, compared to Rp16,000 in the 2025 State Budget. Finance Minister Sri Mulyani and Fiscal Policy Chief Febrio Kacaribu cited global uncertainty and recent market volatility as key reasons for the conservative forecast. The range remains subject to review before the final 2026 State Budget Draft (RAPBN) is prepared.

Indonesia backs Thailand’s bid for full BRICS membership

Foreign Minister Sugiono confirmed Indonesia’s full support for Thailand’s bid to join BRICS , noting the request predates Indonesia’s membership. "We will make every effort to help Thailand be accepted," he said on May 20.BRICS—formed in 2006 and expanded in 2024 to include five new members—welcomed Indonesia in early 2025. Thailand’s entry, backed by Jakarta, is expected to strengthen Southeast Asian economic ties within the bloc.

The Ghanaian cedi has rebounded sharply, now trading at ¢12.33 to the US dollar, per Bank of Ghana data. This recovery follows a nearly 25% year-to-date depreciation and is attributed to strong central bank interventions and improved dollar inflows from exports. At the interbank level, the cedi buys at ¢12.3138 and sells at ¢12.3262. It also gained against the British pound (¢16.32) and the euro (¢13.72). The central bank cited stabilising market conditions but stressed the need for continued vigilance. Favourable gold export prices and disciplined fiscal policies are key to sustaining the trend, as Ghana continues debt restructuring talks.

Ghana and Afreximbank in dispute over $768m debt

Ghana, emerging from a major debt restructuring, is now in a dispute with Afreximbank over a $768.4 million loan. Ghana wants the loan restructured like its other debts, but Afreximbank insists it holds “preferred creditor status” and should be repaid in full. The disagreement could delay Ghana’s debt resolution and set a precedent for how regional lenders are treated in future restructurings across Africa. Ghana’s Finance Ministry rejects Afreximbank’s claim, saying its debt is not senior to others. Similar issues have complicated debt talks in countries like Zambia, Kenya, and Ethiopia.

Ghana Integrity Initiative targets local communities in anti-corruption drive

The Ghana Integrity Initiative (GII), in partnership with CDD-Ghana and GACC, and with EU funding, organised a two-day capacity-building workshop for citizen groups in Akuapem North Municipality. The training focused on the Public Financial Management Act, 2016, and aimed to empower participants to combat corruption in their communities. GII’s Programs and Research Officer, Mr. Jacob Tetteh Ahuno, highlighted the importance of collective action and the need to mobilise civil society in the fight against corruption. He urged participants to raise awareness through outreach in schools, churches, mosques, and markets. The workshop, themed “Citizens Anti-Corruption Training,” is part of the EU-funded “Strengthening Accountability, Rule of Law, and Institutional Responsiveness in Ghana” project. Attendees included representatives from churches, PWDs, NCCE, CHRAJ, GHABA, traditional leaders, and the media.

UK trade envoy visits Ghana to strengthen economic ties

The British High Commission in Accra has announced that Bell Ribeiro-Addy, the UK’s Trade Envoy to Ghana, will make her first official visit from 19–22 May 2025, with engagements in Accra and Kumasi. Appointed in January by Prime Minister Keir Starmer, Ribeiro-Addy’s visit underscores the UK’s commitment to deepening trade relations and economic cooperation with Ghana. She will meet with key stakeholders, including Finance Minister Dr. Ato Forson, Trade Minister Elizabeth Ofosu-Adjare, Deputy Education Minister Dr. Clement Apaak, traditional leaders, academics, UK businesses, and the GIPC. Discussions will focus on trade expansion, investment, and mutual economic growth.

Ghana's cocoa faces EU ban over heavy metal contamination – Dutch envoy

Ghana risks having its cocoa rejected by the European market due to contamination from heavy metals, warns Jeroen Verheul, Dutch Ambassador to Ghana. He attributed the threat to illegal mining activities, which not only reduce cocoa production but also pollute water sources that could affect cocoa beans. Verheul noted that some farmers are accepting large sums from gold prospectors to give up their cocoa farms, further worsening the decline. Ghana’s cocoa output has dropped significantly in recent years, posing a direct threat to trade, especially with the Netherlands, which imports about 300,000 metric tonnes of cocoa annually. Speaking to The Ghanaian Times , he emphasised the urgent need to address "Galamsey" and protect Ghana’s cocoa industry.

Retail trade sales in Brazil rose 0.8% from February to March 2025, reaching their highest level since the series began in January 2000, according to IBGE's Monthly Survey of Trade. This marks the third consecutive monthly gain, pushing the quarterly moving average up 0.6%. Growth was broad-based, with six of eight sectors showing increases. Key contributors included pharmaceuticals and supermarkets. Books, newspapers, and stationery saw a 28.2% jump, driven by textbook sales delayed to March due to changes in the school calendar. Office and tech equipment rose 3.0%, following stock adjustments linked to currency fluctuations. Other gains came from household items (1.5%), pharmaceuticals (1.2%), apparel (1.2%), and supermarkets (0.4%). Meanwhile, furniture (-0.4%) and fuels (-2.1%) declined. Extended retail trade also grew 1.9%, led by vehicles (1.7%) and construction materials (0.6%).

Brazil industrial confidence rises to 48.9

Brazil’s Industrial Entrepreneur Confidence Index (ICEI) edged up to 48.9 in May 2025 from 48 in April, staying below the neutral 50 mark for the fifth straight month. Improved confidence came amid signs of recovery and a weaker dollar, despite high domestic interest rates. Business performance expectations rose to 51.3, while broader economic outlook improved to 42.5. Current business conditions also saw modest gains, with business confidence at 47.3 and economic sentiment at 37.3.

Brazil blacklists over 500 amazon farms in anti-deforestation crackdown

On May 6, Brazil’s Ministry of Environment blacklisted 545 rural properties in Pará for illegal deforestation, barring them from selling crops and livestock domestically and abroad. This marks one of the country’s largest satellite-driven crackdowns, replacing individual embargoes with mass penalties based on remote sensing data. Most affected lands are near Castelo dos Sonhos in Altamira—an area plagued by violence and rampant deforestation. Farmers have until June 6 to remove livestock or face fines. While appeals are allowed, many may miss deadlines for agricultural credit. The move has sparked fear and resistance among local producers.

BRICS de-dollarisation advances as Brazil eyes yuan bonds

Brazil is weighing two key financial measures : issuing its first sovereign bonds in Chinese yuan, known as “Panda Bonds,” and a Central Bank proposal to limit stablecoin transfers to non-Brazilian wallets, according to government sources. While the bond plan remains under review, its approval would mark a significant step in diversifying Brazil’s funding sources and deepening financial ties with China. The move aligns with broader efforts by BRICS nations to reduce reliance on the U.S. dollar. If issued, the Panda Bonds would be traded in China’s domestic market and settled in yuan, reinforcing Brazil’s growing role in the global shift toward multipolar finance.

Nigeria, Brazil to collaborate on homogeneous spirituality for tourism development

The National Institute for Cultural Orientation (NICO) will partner with the Brazilian Consulate to accredit Yoruba traditional practitioners, such as babalawos, Ifa priests, and traditional kings, before they are granted visas to Brazil. NICO’s executive secretary, Otunba Biodun Ajiboye, announced the initiative at a press conference on the World Orisha Congress (WOOCON) in Lagos. The move aims to curb unethical practices by individuals posing as traditional practitioners and to preserve the integrity of Yoruba Orisha traditions. NICO also plans to create a platform to support global traditional worshipers visiting Nigeria for cultural exploration. Brazilian Consul General Manuel Inocencio de Lacerda Santos Junior praised the effort to uphold Yoruba heritage in Brazil.

The report says the current trend is no longer a reaction to market forces but a deliberate step toward dollarisation.

At the end of April, the average monthly salary in Cuba was 5,839 pesos. At the informal exchange rate of 370 pesos to the dollar, that is worth just $15.78, sharply reducing the purchasing power of most workers.

For pensioners, the situation is even worse , with the minimum pension now worth about $4.13.

The report warns that the growing use of foreign currency, including digital ones like the MLC, is widening the gap between Cubans who have access to dollars and those who do not.

State companies in select industries such as tourism and biotechnology are allowed to keep part of their foreign currency earnings, while others and most ordinary citizens are still stuck with the weakening peso.

Meanwhile, the Cuban government reported a budget surplus in March 2025, a rare occurrence in recent years.

However, the surplus came after cutting spending in areas like social services and raising prices on basic goods such as fuel and electricity, moves that may hurt low-income households.

South Africa's rand has strengthened against global currencies, trading at approximately R17.24 against the dollar, its best level since July 2023. This surge is expected to lead to further petrol price cuts, with projections indicating a decline in petrol inflation to around -20% year-on-year. As a result, overall inflation, which was at a three-year low of 4.4% in August, could see a reduction by about one percentage point, Media agency Independent Online reports. Despite these changes, Old Mutual's Izak Odendaal noted that the South African Reserve Bank is unlikely to cut interest rates in response to oil price declines, as they focus on the broader economic impacts rather than initial price shocks.

Ramaphosa speaks against apartheid

In his address at the United Nations General Assembly, President Cyril Ramaphosa affirmed South Africa's stance against apartheid, expressing solidarity with those facing oppression. He underscored the UN's vital role in advocating for human rights, the dignity of all individuals, and the need for an immediate ceasefire in the ongoing violence in Palestine. According to SA News , Ramaphosa announced plans for South Africa to submit a case to the International Court of Justice in 2024, accusing Israel of genocide.

South Africa's rand

On September 25, South Africa's rand rose to a 20-month high, trading at 17.22 against the U.S. dollar, marking a 0.3% gain. Analysts attribute this rally to positive sentiment following interest rate cuts by the South African Reserve Bank (SARB) and the U.S. Federal Reserve. Currency strategist Andre Cilliers predicts the rand will likely trade between 17.20 and 17.40. Investors are awaiting August producer inflation figures to gauge easing price pressures. CNBC Africa reported the Johannesburg Stock Exchange's Top-40 index climbed 1.5%, while the yield on South Africa's benchmark 2030 government bond increased slightly to 8.86%.

Electricity prices

Eskom, South Africa’s state-owned power utility, has requested a 36% increase in electricity prices for the 2026 financial year, significantly surpassing the country’s 4.4% inflation rate. This increase is deemed essential for addressing Eskom's financial challenges, including a debt of 400 billion rand (approximately $23 billion), Financial Post report indicates. Although the company has recently experienced fewer power cuts, it struggles with consistent electricity supply and long-term sustainability. Eskom has also proposed smaller price hikes of 11.8% for fiscal 2027 and 9.1% for 2028.

South Africa ranks among least secure nation

A recent Gallup poll indicates that South Africa ranks among the least secure nations, with 70% of citizens feeling unsafe walking alone. The country is in the bottom three globally, alongside Ecuador and Liberia. In contrast, Kuwait, Singapore, and Norway have significantly higher safety perceptions, with only 1% to 8% feeling unsafe. According to Africa.com , consistent low safety perceptions and confidence in police are noted in sub-Saharan Africa. Despite efforts to improve police visibility, South Africa faces high crime rates, including over 6,000 murders and 9,000 rapes reported between April and June 2024.

The vibrant fabric of Zambia's cultural landscape was prominently displayed during the 2024 National Arts Festival in Lusaka. Organised meticulously by the Ministry of Youth, Sports and Art and the Zambia National Arts Council, this festival served as a nexus for artistic expression, bringing together artists from various backgrounds. The News Diggers reports that through a series of captivating performances and fashion shows, this event underscored the emotional resonance of art while fostering a communal spirit, culminating in a celebration of creativity that reaffirmed the vital role of art in mirroring the nation's socio-cultural essence.

Google to build an AI centre

In a significant technological advancement, Google has announced the establishment of an Artificial Intelligence Centre of Excellence at the University of Zambia. This initiative comes after a Memorandum of Understanding with the Ministry of Technology and Science. As articulated by Technology and Science Minister Felix Mutati, this AI centre marks a pioneering effort as the first of its kind in Southern Africa, strategically situated at the Zambia Research and Education Network (ZAMREN). As reported by TechAfrica News , the primary objective of this centre is to empower young innovators, equipping them with the necessary tools to devise solutions for local challenges. Furthermore, ZAMREN's noteworthy achievement of connecting 150 institutions to high-speed internet is instrumental in broadening student access, thereby fostering an environment conducive to innovation.

Tanzania-Zambia Railway to be rejuvenated

The regional cooperation between China, Tanzania, and Zambia is set to rejuvenate the Tanzania-Zambia Railway (TAZARA), which was initially established in the 1970s to enhance Zambia’s accessibility. This collaborative agreement, formalised during the recent Forum on China-Africa Cooperation (FOCAC) summit, signals a public-private partnership aimed at the rehabilitation of this critical transport artery. According to Globely News , the revival of TAZARA is especially pertinent given Zambia's current financial challenges, as this renewed focus by China is also an effort to counterbalance the strategic movements surrounding the U.S.-backed Lobito Corridor project which connects Zambia to Angola’s Atlantic port. Concurrently, Tanzania is undertaking its railway network expansion, with aspirations to position Dar es Salaam as a pivotal trade hub in the region.

Huawei donates telecom towers

Huawei has donated equipment for 25 communication towers to enhance national communication services. The donation, including wireless and transmission technology power systems, was formalized during President Hakainde Hichilema’s visit to China in September 2023 and solidified through a Memorandum of Understanding with the Ministry of Technology and Science in June 2024. Technology and Science Minister Felix Mutati announced that Zamtel will oversee the construction of these towers in remote areas with limited phone service access, as reported by Telecompaper .

De-dollarisation strategy in progress

Zambia's central bank is actively engaging in a de-dollarisation strategy to mitigate the depreciation of the kwacha, which has faced a staggering 22% decline against the dollar over the past year. Governor Denny Kalyalya disclosed that this initiative, first announced in June, is designed to curtail the use of foreign currency in local transactions, thereby augmenting the effectiveness of monetary policy. Bitcoinnews.com reports this plan, however, has encountered criticism as Zambia grapples with the challenges of recovering from a debt default coupled with an extensive power crisis that restricts electricity supply to households. Despite the limited usage of foreign currency in everyday transactions, certain sectors, notably real estate and automotive sales, continue to engage in dollar-based pricing. The central bank remains in consultation with various stakeholders, and a timeline for the implementation of this de-dollarisation strategy has yet to be established.

“Türkiye stands out with a staggering growth of over 157% in wealth per adult between 2022 and 2023, leaving all other nations far behind,” Swiss bank UBS wrote.

According to the report, one of the primary drivers of this wealth increase is the significant rise in asset prices, particularly in real estate. As inflation soared to over 71%, the value of assets like homes also surged, contributing to the overall increase in wealth.

Turkey's wealth growth stands in contrast to other countries. The next-highest countries in terms of average wealth growth per adult were Qatar and South Africa, with increases of nearly 20% and 16%, respectively. In comparison, the United States saw a modest 2.5% growth in average wealth per adult.

While the wealth growth figures are impressive, they come with significant challenges. The high inflation rate in the country has eroded the purchasing power of many Turks, leading to economic hardships for a large portion of the population.

The Turkish lira has lost nearly 83% of its value against the dollar over the past five years, further complicating the economic landscape.

However, the report expands that the world in general is recovering quickly from the 2022 wealth slump.

"Last year, global wealth rebounded from its 2022 slump. Wealth is steadily growing throughout the world – albeit at different speeds – with very few exceptions. The proportion of people in the world in the lowest wealth bracket has shrunk since 2008, while the proportion of people in every other wealth bracket has grown," UBS said.

Additionally, the bank projects that by 2028, the world will experience a huge leap in adults with wealth over a million dollars.

"By 2028, the number of adults with wealth of over USD one million will have risen in 52 of the 56 markets in our sample, according to our estimates. In at least one market – Taiwan – this increase may reach 50%. Two notable exceptions are expected to be the United Kingdom and the Netherlands," the report adds.

Saudi Arabia has risen to 16th place in the World Competitiveness Index 2024, thanks to its economic diversification efforts, government efficiency, and business-friendly environment. The country's Vision 2030 programme has contributed to this growth. The report, from the International Institute for Management Development, ranked Saudi Arabia higher than G20 peers like India, the UK, Japan, Italy, Argentina, Indonesia, Brazil, and Turkiye. Saudi Arabia also ranked first in cybersecurity, long-term employment growth, long-term labour market growth, internet usage per thousand people, business efficiency, stock market capitalisation, and digital transformation, Arab News reports.

Heat kills Jordanians during Hajj pilgrimage

Fourteen Jordanians have died during the annual Hajj pilgrimage in Saudi Arabia, with six due to heat stroke. The Saudi health ministry warned of soaring temperatures and advised pilgrims to stay hydrated. The Jordanian foreign ministry is coordinating with Saudi authorities on burying or transporting the deceased according to their family's wishes. The Hajj is one of the largest mass gatherings in the world.

End of Petrodollar deal with US

Saudi Arabia has decided not to extend its petrodollar agreement with the United States after its expiration on June 9, 2024. According to experts , this might lessen the US currency's hegemony by enabling Saudi Arabia to sell oil in currencies other than the US dollar. The agreement was established in 1974 allowing Saudi Arabia to sell oil exclusively in US dollars in exchange for military aid, equipment, and protection.

Neuroradiology saves female Iraqi pilgrim

A female Iraqi pilgrim suffered a stroke in Saudi Arabia, causing her to lose the right side of her body. She was treated at King Abdullah Medical City, part of the Makkah Health Cluster in western Saudi Arabia, where a thrombus was removed, according to Arab News . An interdisciplinary medical team, including an emergency doctor, neurologist, and radiologist, performed rapid procedures to restore her blood supply to the brain.

Criticism of new mega-city

Saudi Arabia's futuristic Neom megacity, The Line, has faced criticism for its environmental impact, practicality, and utility. The project, which includes two parallel mirrored skyscrapers, has been criticised for its sheer cost and lack of sustainability. The Line, along with other plans, includes an octagonal floating city, a luxury island resort, and a ski and adventure mountain range. The project's scale has been reduced to fewer than 300,000 people by 2030, and its costs have also raised concerns.

South African elections are marred by crime and violence, with recent incidents including the arrest of a suspect in the murder of two members of a new political party. Tensions have also been exacerbated by disruptive protests and concerns of potential unrest before and after the elections, local media Nation reports.

South African rand against U.S. Dollar

The South African rand edged lower against the dollar, trading at 18.79 ($1.02), down 0.3%. Analysts attributed the movement to global market factors rather than domestic economic releases. The rand is expected to trade within a range of R18.60/18.85 ($1.01/1.03) in the short term, tracking international moves. According to Nasdaq , the currency was supported by a surge in gold prices last week but took a breather ahead of a U.S. inflation report on Tuesday. Bond yields were marginally stronger in early deals.

Witch doctors attracting Christians

In South Africa, online traditional healers also known as Sangomas or witch doctors, are using social media to attract millennial Christians, causing concern for church leaders. Many younger Christians are embracing traditional African spirituality alongside Christianity, leading to conflicts within the church. Some churches welcome the practice, while others warn of scams and the potential damage to the integrity of the Christian faith, Christianity Today reports.

Special needs citizens vote ahead of elections

South Africa is preparing for national elections with 27 million people expected to participate. People with special needs, including those in prisons and hospitals, voted early. According to TVC News , the elections coming off on May 29 will mark 30 years of democratic governance after the end of Apartheid.

African Indoor Hockey

South Africa and Namibia won gold in the Indoor Africa Cup, securing their spots in the International Hockey Federation (FIH) Indoor Hockey World Cup 2025 in Croatia. Both men's and women's teams qualified, with South Africa and Namibia finishing as the silver medalists. The FIH reports that the tournament featured thrilling matches, with both countries emerging as the champions of African Indoor Hockey.

Many countries compare the strength of their currencies against the Dollar's performance to determine their economic health and international standing.

While countries like Japan, Britain, and Switzerland boast of currencies that compare to the dollar, some African countries equally boast of the stability of their currencies and the respective influence they carry globally.

In this article, we explore the strongest legal tenders in some African currencies.

1. Tunisian Dinar (Tunisia) Currency Name: Dinar Code: TND Current Exchange Rate: $1 = 3.14

2.  Libyan Dinar (Libya) Currency Name: Dinar Code: LYD Current Exchange Rate: $1 = 4.86

3. Moroccan Dirham (Morocco) Currency Name: Dirham Code: MAD Current Exchange Rate: $1 = DH 10.02

4. Botswana Pula (Botswana) Currency Name: Pula Code: BWP Current Exchange Rate: $1 = 13.61

5.  Seychellois Rupee (Seychelles) Currency Name: Seychellois Rupee Code: SCR Current Exchange Rate: $1 = SRe 13.86

 6. Ghanaian Cedi (Ghana) Currency Name: Cedi Code: GHC Current Exchange Rate: $1 = GH₵ 13.89

 7. Eritrean Nakfa (Eritrea) Currency Name: Nakfa Code: ERN Current Exchange Rate: $1 = Nfk 15.00

8. South African Rand (South African) Currency Name: Rand Code: ZAR Current Exchange Rate: $1 = R 18.35

 9. Zambian Kwacha (Zambia) Currency Name: Kwacha Code: ZMW Current Exchange Rate: $1 = ZK 27.37

 10. Egyptian Pound (Egypt) Currency Name: Egyptian Pound Code: EGP Current Exchange Rate: $1 = E£ 47. 40

What they said

Minister of Industry, Trade and Investment, Doris Uzoka-Anite said, “The fund is part of broader efforts to strengthen ties between Nigeria and its diaspora and promote national development. The fund will be managed by Fund Managers who satisfy the criteria set out in the Expression Of Interest (EOI). The Fund manager will propose Fund structures that will focus on various sectors and stages of investments. Subject to the preferences indicated by fund managers, the fund will contain multiple investment platforms designed to offer investors different mechanisms for participating in Nigeria’s economic transformation.” “This fund is a way of encouraging remittances, attracting investments and facilitating philanthropic endeavours aimed at supporting various sectors such as infrastructure, healthcare, education and entrepreneurship in Nigeria,” she is quoted by Vanguard NG. 

At the launch of the new currency also known as 'Zimb Gold', Zimbabwe's Reserve Bank governor, John Mushayavanhu , directed all banks to convert any US dollars in their possession, as well as those held in their vaults, into ZiG.

"With effect from today, banks shall convert the current Zimbabwe dollar balances to ZiG," Mushayavanhu said, adding that it "will circulate with other currencies in the basket. If we implement these measures, we expect them to impact inflation."

Fifteen days have passed since the introduction of 'Zimb Gold,' declared to have been in circulation since April 8. However, ZiG has not yet fully supplanted all transactions due to the government's decision to postpone distribution until April 30.

Zimbabwean currencies have historically faced off against the US dollar, with the latter consistently emerging victorious. Will the outcome be any different when ZiG eventually takes over after a few years?

Zimbabwe's history with the US dollar

Zimbabwe's history with the US dollar is a complex one, marked by economic challenges and currency changes. The Zimbabwean dollar (ZWD) was introduced in 1980 to replace the Rhodesian dollar at par and was initially worth more than the US dollar in the official exchange market. In the early 21st century, the country experienced extreme hyperinflation, leading to the dramatic devaluation of the ZWD.

This resulted in three redenominations and a $100 trillion banknote issuance . The hyperinflation led to the abandonment of the ZWD in 2009. In its place, multiple foreign currencies, including the US dollar, were used for transactions. In 2016, Zimbabwe introduced bond notes and coins to address the shortage of US dollars, which were pegged to the US dollar but not accepted outside the country.

Subsequently, Zimbabwe ended a decade of official use of the US dollar in most domestic transactions, reintroducing a local currency (RTGS Dollar) that had been abandoned in 2009 due to hyperinflation in 2019. In April 2024, the RTGS Dollar was replaced with a new gold-backed currency called ZiG. Throughout this period, the US dollar has played a critical role in Zimbabwe's economy, serving as a stable currency during times of economic turmoil.

Why did Zimbabwe switch from US dollars to ZiG?

Zimbabwe switched from the US dollar to the new gold-backed currency, ZiG, as part of its latest attempt to create a stable and reliable currency that can help alleviate the economic challenges the country has faced for the past 25 years .

The previous currency, the RTGS, had lost a significant portion of its value, and annual inflation had reached a seven-month high of 55% in March . The central bank committed to backing the amount of local currency in circulation with an equivalent value in precious minerals, mainly gold, or foreign exchange, to prevent the currency from losing value like its predecessors.

The switch also comes at a time when Zimbabwe is dealing with the effects of a serious drought, which has destroyed half of the country's maize crop , further emphasising the need for economic stability. The ZiG is the country's sixth attempt at introducing a revamped currency.

The current state of the ZiG

In the absence of the new currency ZiG, Zimbabweans are compelled to rely on the US dollar for their transactions. Nevertheless, Zimbabwe's informal traders, constituting approximately 75% of the nation's workforce, have ceased accepting the ZIMdollar, also known as the RTGS dollar, due to concerns over its depreciating value.

As reported by Africanews , an economist, Happy Zengeni explained that there happens to be inadequate or transparent measures that will push the newly introduced ZiG to thrive.

"When you introduce new measures, you will be hoping that you will bring stability and lower inflation but you need to be disciplined and sincere about the process," economist Happy Zengeni explained. "The ordinary Zimbabwean cannot inject liquidity into the economy but capacity rests with the authorities so they need to be sincere about it."

The unexpected rise of the U.S. dollar is fuelled by a myriad of factors that have collectively propelled it to multi-year highs. According to Bloomberg's insights, this increased dollar's value echoes across global markets, triggering widespread concerns among investors and policymakers.

The dollar's strength is significant for international trade dynamics, Bloomberg highlights. That is, a thriving dollar renders U.S. exports more expensive for foreign buyers, potentially dampening demand and exerting downward pressure on trade balances.

Moreover, Bloomberg's examination highlights the challenges the dollar's strength poses to emerging market economies like the Maldives and Bolivia . These nations struggle with substantial dollar-denominated debt, making them particularly vulnerable to currency fluctuations. As the dollar appreciates, the cost of servicing this debt rises, potentially triggering financial instability and magnifying existing vulnerabilities.

“The US dollar keeps turning up the heat on other central banks,” said Helen Given, a foreign exchange trader at Monex. “Given the current global environment where central banks appear to be looking to end their tightening cycles, there doesn’t seem to be a safe way out from the dollar’s continued dominance.”

The effects of the strong dollar extend beyond trade and emerging markets to encompass broader implications for financial markets and investor sentiment. Bloomberg 's analysis indicates that a stronger dollar tends to weigh on commodity prices, particularly those denominated in dollars such as oil and gold.

As these challenges persist, Japan has issued increasingly dire warnings about its preparedness to intervene to strengthen the yen, which is drifting near a 34-year low. Meanwhile, Turkey has surprised markets by implementing a rate hike to strengthen the lira. Additionally, China and Indonesia have taken steps to stabilise their currencies, while Sweden and India find themselves similarly under pressure to address currency concerns.

What they said

Financial Derivatives, a consultancy based in Lagos, pointed to the Central Bank of Nigeria's reported settlement of a $7 billion backlog in forward commitments as a factor boosting confidence in the country's central bank. Goldman Sachs analysts anticipate the dollar to be valued at 1,200 naira "within the next 12 months," indicating potential strengthening of the naira, Semafor reports. Similarly, Cardinal Stone foresees "latitude for further improvements in FX reserves," suggesting optimism regarding Nigeria's foreign exchange reserves. According to a research report by Cardinal Stone , “The Naira has exhibited notable resilience in recent weeks and has strengthened by 11.4% at the official markets since the beginning of March, positioning it as one of the top-performing currencies in Africa. These gains are attributed to the resumption of foreign exchange sales to Bureau de Change (BDC) operators, with the CBN selling approximately $20,000 to each BDC on a weekly basis. Furthermore, the CBN has intensified its oversight of BDCs, leading to the revocation of licenses of 4,173 out of the total 5,690 operators in Nigeria."

Carlos Hurtado, the Head of Epidemiology of the Departmental Health Service in Santa Cruz, the Eastern part of Bolivia confirmed the first monkeypox case in the region in 2024. According to a report received by the Bolivian National Center for Tropical Diseases (Cenetrop) on February 9, the patient is a 22-year-old man with general malaise, fever, and anal pain. Hurtado reports that the patient is receiving antibiotic treatment and is being evaluated for hospitalization and isolation. The contagion is indigenous and not related to international travel, local media Los Tiempos reports.

$52 million in mineral theft

Bolivia's mining sector, which accounted for 24% of exports in 2023, is facing significant damage from the illegal practice of "juqueo," or mineral theft. The theft of nearly two tons of minerals per year, mainly tin, is a significant issue, causing an estimated $52 million in losses, local media El Diario reports. According to El Diario, more looting has occurred as a result of cooperatives being freed from labour, environmental, and tax requirements. Bolivian Mining Corporation mines have a significant issue with cooperatives, which are exempt from labour, environmental, and tax obligations. Despite 2018 laws punishing mineral theft with 10 years in prison, cooperatives evaded $1.4 billion in 2022, threatening economic stability and highlighting the need for reforms, El Diario reports.

Aid to assist forest fires in Chile

Bolivia has sent 70 tons of humanitarian aid to Chile to assist those affected by forest fires. The package includes rice, noodles, flour, powdered milk, sugar, and medical supplies, totalling around Bs 6 million (around $870,000). Chile's President, Gabriel Boric on February 4 declared two days of national mourning for the fatalities of the forest fires which at the time was 112, a tragedy described as “the largest” since the 2010 earthquake that hit the Latin American nation, Los Tiempos reports.

Shortage of medicine due to lack of dollars

The Pharmaceutical Chamber in Bolivia warns that the lack of dollars could hinder the import of medicines for the sick, urging authorities to act immediately. According to El Diario , the state bank has reduced foreign and national currency transactions, and economic analysts have noted a 16% loss against the dollar. The Bolivian Financial System Supervision Authority has established that commissions for transfers abroad exceeding $1,000 will be determined by the bank when the consumer buys dollars from the financial institution, El Diario reports.

Cessation of magistrates extension

The Attorney General of Bolivia, César Siles, has warned that the possible cessation of the extension of magistrates could be declared unconstitutional if the bill is approved in the Legislative Assembly of the Latin American nation. Siles believes that approving other regulatory projects without constitutional protection could lead to the same issue. “Trying to approve other regulatory projects, other laws, without having the constitutional umbrella, we are going to return to the same thing, because the Constitutional Court is going to have to declare it unconstitutional. Although I do not believe that the dismissal of magistrates will be approved, if it is approved, a declaration of unconstitutionality will surely correspond to that bill,” he is quoted by local media El Deber .

“We continue to increase the share of national currencies in mutual settlements. If in 2020 this figure was about 20 per cent, then this year we have actually completely gotten rid of the currencies of third countries in mutual settlements,” Mishustin was quoted as saying by Russian media, RT International .

Mishustin also mentioned that business relations between the two nations are booming.

“We are creating comfortable conditions for the work of commercial firms on the Russian and Chinese markets. We have an extensive joint agenda,” Mishustin added.

In response to sanctions severing Moscow from the Western financial system, Russia and its trade partners are increasingly shifting towards alternative currencies for mutual trade, with a growing trend among nations to opt for national currency settlements, Russian media RT International reported.

Besides discontinuing the use of the US dollar in its trade with China, Russia is also urging BRICS to abandon the US dollar.