The news about China dumping the dollar in favour of its own Renminbi (RMB) cryptocurrency is creating a lot of debates among stakeholders. And the question that lingers in the minds of many people is: What impact will China’s de-dollarisation mean to the emerging economies?
We might perhaps say that nothing will happen to sub-Saharan Africa (SSA) since inflation has been on a downward trajectory. However, dollarisation is often associated with countries with macro-economic instability. Countries such as Somalia and Zimbabwe stand out in the SSA as those that may not switch immediately to unfamiliar currencies like the yuan because of the high inflation.
