Which African countries have a currency shortage?

A number of African countries, including Kenya, Egypt, Zimbabwe, Nigeria, Ghana and Zambia, are currently experiencing shortages of US dollars. The dollar is the dominant currency in international transactions. These countries rely on the US currency to pay for foreign debts, essential goods and industrial inputs.

Why is there a dollar shortage in Africa?

“The proximate reason for a dollar shortage is the pressure on the balance of payments as a result of the so-called rolling crisis impacting many African economies,” says Christopher Adam, professor of development economics at the University of Oxford.

What happened to Zimbabwe's currency?

In 2019, the government reintroduced the Zimbabwean currency and banned foreign currencies in local transactions. But the revamped Zimbabwe dollar floundered. U.S. dollars kept trading in the black market, and the government lifted the ban. Now, 80% of transactions in the country are in U.S. dollars.