Egypt will continue to pay for tea at the Mombasa auction in dollars despite its recent move away from the greenback in international trade.
All transactions at the Mombasa Tea Auction are denominated in dollars, obliging all buyers to utilise the US currency.
An official at the auction clarified that there have been no negotiations, nor will there be, to permit Egypt to settle its dues using an alternative currency.
"The dollar is the sole currency accepted for trade at the auction, and there will be no exceptions for Egypt," said the official, speaking anonymously to Business Day Africa.
Egypt ranks as one of Kenya's top tea buyers, consistently holding the second position in both value and quantity for many years.
In the previous year, Egypt imported tea worth Ksh22 billion, reinforcing its status as Kenya's second-largest purchaser of the beverage.
Having recently joined BRICS, Egypt is aligning with the economic bloc's push for de-dollarisation. This move underscores the country's determination to reduce reliance on foreign currencies, particularly the US Dollar, as demonstrated by its efforts to transition trade with Ethiopia and finalise significant oil deals with the United Arab Emirates (UAE) in local currencies.
Egypt's decision to pivot away from the US dollar aligns with its membership in BRICS, alongside nations such as Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates which joined the bloc recently.
This shift aims to mitigate the financial impacts associated with depending on foreign currencies for trade settlements.
The move away from the US Dollar mirrors a global trend driven by geopolitical tensions, economic sanctions, and a desire for greater financial autonomy.
Countries worldwide are exploring alternatives to diversify economic risks and reduce vulnerability to currency fluctuations.
Egypt, grappling with a shortage of dollars and a weakened pound, faces challenges including negative implications on consumer purchasing power, contributing to inflationary pressures in a country where 60 percent of the population lives below the poverty line.
Egypt will continue to pay for tea at the Mombasa auction in dollars despite its recent move away from the greenback in international trade.
All transactions at the Mombasa Tea Auction are denominated in dollars, obliging all buyers to utilise the US currency.
An official at the auction clarified that there have been no negotiations, nor will there be, to permit Egypt to settle its dues using an alternative currency.
"The dollar is the sole currency accepted for trade at the auction, and there will be no exceptions for Egypt," said the official, speaking anonymously to Business Day Africa.
Egypt ranks as one of Kenya's top tea buyers, consistently holding the second position in both value and quantity for many years.
In the previous year, Egypt imported tea worth Ksh22 billion, reinforcing its status as Kenya's second-largest purchaser of the beverage.
Having recently joined BRICS, Egypt is aligning with the economic bloc's push for de-dollarisation. This move underscores the country's determination to reduce reliance on foreign currencies, particularly the US Dollar, as demonstrated by its efforts to transition trade with Ethiopia and finalise significant oil deals with the United Arab Emirates (UAE) in local currencies.
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Egypt's decision to pivot away from the US dollar aligns with its membership in BRICS, alongside nations such as Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates which joined the bloc recently.
This shift aims to mitigate the financial impacts associated with depending on foreign currencies for trade settlements.
The move away from the US Dollar mirrors a global trend driven by geopolitical tensions, economic sanctions, and a desire for greater financial autonomy.
Countries worldwide are exploring alternatives to diversify economic risks and reduce vulnerability to currency fluctuations.
Egypt, grappling with a shortage of dollars and a weakened pound, faces challenges including negative implications on consumer purchasing power, contributing to inflationary pressures in a country where 60 percent of the population lives below the poverty line.
