Tuesday, 14 August 2012 05:16

African Governments, looking to boost local currencies, impose penalties for dollar use

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"African countries are trying to shoo the U.S. dollar away, even if it means threatening to throw people who use greenbacks in jail.

Starting next year, Angola will require oil and gas companies to pay tax revenue and local contracts in kwanza, its currency, rather than dollars. Mozambique wants companies to exchange half of their export earnings for meticais, hoping to pull more of the wealth in vast coal and natural-gas deposits into the domestic economy. And Ghana is seeking similar ways to reinforce “the primacy of the domestic currency,” after the cedi plummeted more than 17% against the dollar in the first six months of this year."

Marketwatch article

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