Explainer: Africa’s new online foreign exchange system

The Kenyan currency.

The Pan-African Payment and Settlement System which is scheduled to go live in 2024 under Kenya’s leadership. PHOTO | SHUTTERSTOCK

Photo credit: Shutterstock

The high cost of making cross border payments on the African continent has driven governments on the continent to seek options of settling trade and other transactions in local currencies. This has given birth to the Pan-African Payment and Settlement System which is scheduled to go live in 2024 under Kenya’s leadership.

Development economist Christopher Adam, who has studied the exchange rate policies of African countries, answers some key questions.