Kenya’s Bold Move: Shillings to the Rescue as Dollar Crisis Triggers Fuel Shortage
Kenyan President William Ruto presented a new initiative on Wednesday to tackle the ongoing dollar crisis by proposing that Kenya purchases oil using its own currency, the shilling.
Ruto accused oil cartels of stockpiling dollars, which has resulted in a fuel shortage within Kenya.
He announced that his government would now procure oil using Kenyan shillings, ensuring access to dollars for those facing difficulties in obtaining them. Ruto made this announcement during a speech at the Nairobi Security Exchange.
To facilitate the purchase of oil with shillings, Ruto explained, “Last week, we finalized an agreement within our fuel sector that enables Kenya to fulfill its fuel requirements through a deferred six-month credit system. This arrangement will eliminate the need for this market to demand 500 million dollars each month.”
Furthermore, the president disclosed that his administration had implemented measures to alleviate the scarcity of dollars, including a six-month credit deal allowing Kenyans to acquire petrol.
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Ruto issued a warning to those who were hoarding dollars, stating, “I strongly advise those currently stockpiling dollars that you may soon face significant losses. Take the necessary actions because this market will undergo substantial changes within a few weeks.”
He also mentioned that key stakeholders in the sector, including banks, were collaborating with the central bank to address this issue.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
