--- image: "/images/notes/africas-fx-drought.jpg" title: "Africa's FX Drought, in Three Numbers" date: 2025-08-05 url: "https://x.com/ccatalini/status/1952727589644329326" tags: ['stablecoins-payments'] deck: "Dollars trickle in; ~$750bn of imports, ~$90bn in debt coupons, and ~$89bn in illicit flows suck them right back out. Stablecoins rewired the back-alley FX bazaar." tweetCount: 4 likes: 3 reposts: 1 --- Africa’s FX drought in three numbers: dollars trickle in, but ~\$750 bn of imports, ~\$90 bn in debt coupons, and a stealthy ~\$89 bn in illicit flows suck them right back out. End-game: everyone queues for the last \$20 in the till. In the pre-stablecoin era, inflation + capital controls meant a back-alley FX bazaar—fragmented liquidity, 20% spreads, settlements by motorbike. Stablecoins rewired the old FX market: liquidity pools on tap, fees shaved to basis points, and cash-in/out in seconds—riding the mobile money rails already in everyone’s pocket. More in [@yosephayele](https://x.com/yosephayele)'s post! [writing.lavavc.io](https://writing.lavavc.io/p/stablecoins-in-africa-part-i)