• Raebxeh
    ·
    10 months ago

    I was gonna say going on the gold standard is an odd move with predictable downsides, but when the alternative is pegging your currency to the US dollar or the Euro, it makes a lot of sense.

    • zifnab25 [he/him, any]
      ·
      10 months ago

      Having a gold reserve means you're not exposed to a fluctuating foreign exchange rate or SWIFT sanctions cutting off your ability to borrow.

      Niger can get away with it most of all because they have so much to mine. An expansionary gold supply solves the problem of growing your currency at the pace of your economy.

      So it's not as bad idea on its face as it is in theory.

          • zed_proclaimer [he/him]
            ·
            10 months ago

            You aren’t totally wrong though, Traoré is the de facto leader of the entire Alliance of Sahel States (ASS) in addition to being the leader of Burkina Faso.

            Mali, Niger and Burkina Faso form ASS, an impromptu anti-colonial alliance formed to oppose ECOWAS, France, Nigeria and ISIS/Western backed jihadists. They are aligned with Russia.

            https://en.m.wikipedia.org/wiki/Alliance_of_Sahel_States

          • redtea@lemmygrad.ml
            ·
            10 months ago

            I kinda read your comment as saying, if Niger can do it, Burkina Faso should at least try.