The President of Kenya, William Ruto, has recently advised his citizens to get rid of their US dollars. In a press conference, President Ruto predicted that the global market will be “very different” in the upcoming weeks. Through these claims, the President implies that the value of the dollar is likely to decrease significantly in the next couple of weeks. Most believe that this FUD comes after the bankruptcy of Silvergate and Silicon Valley Bank. The fall of Credit Suisse plays a role as well, as the bank was a major European bank.
🇰🇪 President of Kenya tells citizens to get rid of US dollars. pic.twitter.com/KX79y2Gsao
— Watcher.Guru (@WatcherGuru) March 27, 2023
The value of the US dollar has been decreasing in recent years. With inflation being an issue, the purchasing power of the US dollar keeps declining. One of the main reasons behind the decrease in the dollar’s value is the Federal Reserve (FED). Just since the fall of Silvergate and Silicon Valley Bank, the FED has printed hundreds of billions of dollars. According to FED executives, they are printing money to keep the banks from going bankrupt. The drawback of this ever-growing US dollar supply increase is higher inflation. This has led to many investors’ concerns that the dollar’s value may continue to decline.
Recently, there has been a shortage of US dollars in Kenya, with Kenyans crossing to Tanzania in search of USD. While the Kenyan Shilling is a good currency, importers and businessmen are interested in the US dollar more as the currency is accepted worldwide. They are blaming the panic purchase of the dollar from banks and forex bureaus, considering the recent bank runs. Since the shortage began, the price of the Kenyan Shilling has been dropping when compared to the US dollar. Today, 1 USD = 131 KES. Back on January, 1 USD was equal to 123 KES.
Experts Believe The US Dollar Is Still The Most Powerful Currency Worldwide
While there is growing propaganda against the US dollar, experts believe that the USD is still the most powerful currency in the world. Moreover, we must note that most of the biggest central banks in the world have their reserves in USD. Even China, one of the biggest competitors of the United States, has the biggest reserves of USD worldwide. When we look at Russia’s Ruble, we also notice that the currency is not accepted in most of the world. USD dominance has been prominent for tens of years, and it isn’t likely this will change soon.
The President of Kenya is concerned about his citizens, and experts understand that. The global market is in a state of flux and no one can predict what is going to happen next. However, getting rid of the US dollar is likely not going to change what is to come.