Another Country Trying to Move Away from the U.S. Dollar

Countries all around the world are trying to move away from the U.S. Dollar, as the U.S. continues to “print” its way out of its problems.

Via Bloomberg:

Democratic Republic of Congo Prime Minister Matata Ponyo said his government plans to tax mining companies in local currency in an attempt to “drastically reduce” dollarization in the economy within three years.

The DRC franc has been stable for four years and “we don’t have any justification for people to pay taxes in U.S. dollars,” Ponyo said in an interview on Oct. 11 in Washington, speaking through an interpreter. “We are in the process to de-dollarize our economy and bring people to use the local currency more and more.”

Hyper-inflation in the 1990s, when consumer prices rose almost 10,000 percent, prompted the government to collect taxes in dollars. The DRC franc has been little changed against the dollar this year and Ponyo said the government is targeting “exceptional” inflation of less than 1 percent. The economy is more than 50 percent dollarized, the prime minister said.”

The only question…whose next?

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