According to PANews, the Pan-African Payment and Settlement System (PAPSS), supported by 15 central banks, is piloting a currency platform to enable countries to settle trade using local currencies. Reuters reports that this platform, known as the African Monetary Market, is scheduled for launch later this year. The introduction of the African currency platform is expected to boost intra-African trade.
The pilot and planned launch of the African Monetary Market coincide with efforts by some African nations to reduce reliance on the U.S. dollar. These countries argue that trading in dollars, which are often scarce, hampers trade. In 2023, Kenyan President William Ruto, who has repeatedly advocated for de-dollarization in Africa, stated that the implementation of PAPSS eliminates the need for dollars in trade settlements.