The African Export-Import Bank (Afreximbank) has intensified support for local currency transactions across Africa as part of efforts to reduce mounting pressure on the United States dollar and strengthen macroeconomic stability in member countries.
The Senior Executive Vice President of the bank, Mr. Denys Denya, disclosed this during a virtual media briefing on Monday, where he outlined Afreximbank’s 2025 financial performance and strategic priorities across the continent.
Denya said the bank was increasingly promoting transactions settled in domestic currencies, particularly in strategic sectors such as energy, manufacturing and trade, in order to lessen dependence on hard currencies for routine commercial activities.
According to him, the continued reliance on the dollar for intra-African trade and critical imports has placed severe strain on many African economies, especially amid global supply disruptions, rising interest rates and currency volatility.
He explained that Afreximbank’s intervention seeks to provide businesses and governments with practical alternatives that reduce foreign exchange demand while improving liquidity in local markets.
“We are also supporting local currency arrangements in strategic value chains. This helps to reduce demand for dollars and gives economies more room to manage their resources effectively,” Denya said.
In Nigeria, the bank is backing a local currency crude supply framework involving the Dangote refinery, a move expected to reduce dollar demand in the petroleum value chain and ease pressure on the foreign exchange market. Analysts say such an arrangement could help improve naira liquidity and lower transaction costs linked to fuel imports.
Denya noted that broader adoption of local currency settlements would also help shield African economies from external shocks caused by geopolitical tensions and disruptions in global financial markets.
He said Afreximbank’s strategy goes beyond short-term trade support, adding that the institution was focused on building resilient financial systems capable of supporting industrialisation and regional integration.
The bank has also continued to expand trade finance lines to commercial banks across the continent, enabling them to issue letters of credit for essential imports including food, pharmaceuticals, fertilisers and petroleum products.
In addition, Afreximbank recently launched a $10bn crisis response programme to help African countries manage the impact of global uncertainties on critical imports and supply chains.
Denya disclosed that the bank’s total assets rose to $48.5bn in 2025, while net income increased to $1.2bn, reflecting strong performance in trade and project finance.
He added that 92 per cent of the bank’s earnings now come from core operations, underscoring its expanding role in Africa’s economic transformation agenda.
Industry observers say the push for local currency trade could become a major turning point for African economies seeking to conserve scarce foreign reserves, stabilise exchange rates and deepen regional commerce.
