Following the BRICS de-dollarization campaign, a new nation in South Africa intends to imprison anyone found using US dollars. Zambia has become the most recent nation to give up the US dollar, and it intends to compel its population to do the same by legislation as the economic alliance continues to push for this goal.
In keeping with the BRICS de-dollarization movement, a recently established country in South Africa plans to jail anyone caught using US currencies. As the economic alliance continues to push for this aim, Zambia, the most recent country to abandon the US currency, plans to impose legal obligations on its citizens to do the same.
Thabo Mbeki, the former president of Zambia, seems to support the recent push to forgo the US dollar. He stated that China, India, several African nations, and those in Latin America had been doubting the US dollar’s role as a global trading currency in a recent discussion over the US dollar. He continued by saying there was no point in utilizing the dollar if two nations that did not use it as their currency entered into trade deals.
Zambian kwacha (ZMW) and ngwee will be the only currencies accepted for local public and private transactions, according to the proposed anti-US dollar law in Zambia. Francis Chipimo, Deputy Governor for Operations at the Zambia Central Bank, highlights the value of utilizing local money when travelling in favour of this new rule at a trade show in Ndola. Chipimo draws attention to the harm that dollarization has done to the national economy. The Deputy governor adds that it hinders effective monetary and exchange rate policy management. Thus, ending reliance on the US dollar will only help the country, which is a similar sentiment in other countries across the continent.
Several other African countries are attempting to replace the US dollar in trade similarly. China, a member of the BRICS, has recently exerted significant influence throughout the continent, particularly in Zambia. For instance, the Bank of China provides services in Nairobi, Kenya, South Africa, and Zambia. Not only does that indicate increased Chinese cooperation, but it also portends a much larger economic transformation.
Although Zambia has not yet submitted an official application to become a member of the BRICS, this new law will undoubtedly make the country more visible to the alliances when they meet in October. Upon arrival, you will be able to exchange your foreign currency for Zambian currency; however, those who do not comply may face a maximum 10-year jail sentence.
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