Ethiopia has announced steps to reduce its reliance on the U.S. dollar by conducting trade using alternative currencies, according to the Ministry of Finance.
State Minister of Finance Eyob Tekalign confirmed on Friday that Ethiopia has already signed bilateral agreements with countries like the United Arab Emirates to enable currency swaps and local currency-based trade.
The move is part of a broader strategy to diversify Ethiopia’s foreign trade operations, mitigate risks linked to fluctuations in the U.S. dollar, and enhance trade partnerships with a wider range of countries.
“This is not only about financial convenience, but also about protecting Ethiopia’s long-term economic interests,” Tekalign said during an interview with Ethiopian Broadcasting Corporation (EBC).
He emphasized that access to multiple foreign currencies will help Ethiopia expand its global trade reach and attract investment under more flexible conditions.
The government’s currency diversification effort also aligns with its goals of improving trade balance, boosting investment flows, and ensuring macroeconomic stability amid external pressures on foreign reserves and inflation.
While Ethiopia continues to face foreign exchange shortages, especially in dollar reserves, the adoption of alternative currency arrangements is viewed as a strategic adjustment to global economic shifts.