NOTES / 2025.08.05 · 4-post thread · 3 likes
Africa's FX Drought, in Three Numbers
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.
FIG. 01 — FROM THE ORIGINAL THREAD
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’s post! writing.lavavc.io
Originally published as a thread on X.