Ethiopia’s Ministry of Finance will allow foreign trade transactions in currencies beyond the U.S. dollar, aiming to decrease dollar dependency risks and strengthen international partnerships.
State Minister Eyob Tekalign confirmed the policy shift in an interview with the Ethiopian Broadcasting Corporation, framing it as a strategic effort to bolster trade balances and insulate the economy from single-currency volatility.
Tekalign disclosed that Ethiopia has already secured agreements with the United Arab Emirates (UAE) to enable bilateral trade using local currencies. “This decision is driven by our goal to strengthen Ethiopia’s trade balance, boost foreign market access, and shield against volatility,” he stated. Additional discussions with other trading partners are underway to extend the initiative.
According to the Ministry, adopting alternative currencies will enhance financial transaction efficiency, improve foreign exchange liquidity, and increase Ethiopia’s global competitiveness. Tekalign characterized the move as a “proactive step toward long-term economic resilience,” aligning with broader efforts to diversify financial partnerships.
The policy reflects a growing international trend among nations seeking to reduce dollar reliance amid shifting global economic dynamics.
