Ethiopia’s Ministry of Finance has announced plans to expand the country’s foreign trade options by allowing transactions in currencies other than the U.S. dollar. The move, officials say, is part of broader efforts to reduce the risks associated with dollar dependency and to deepen international trade and investment partnerships.
Speaking to the Ethiopian Broadcasting Corporation, State Minister of Finance Eyob Tekalign revealed that Ethiopia has already reached agreements with countries such as the United Arab Emirates (UAE) to enable bilateral trade in local currencies.
“This decision is driven by our strategic goal to strengthen Ethiopia’s trade balance, boost foreign market access, and insulate the economy from the volatility of relying on a single currency,” Tekalign said.
The Ethiopian government believes that adopting alternative trade currencies will promote smoother financial exchanges, improve foreign currency liquidity, and make the country more competitive in global markets. Tekalign noted that discussions are ongoing with other trading partners to expand the initiative, describing it as a proactive step toward long-term economic resilience.
The shift also aligns with a growing trend among several nations seeking alternatives to the U.S. dollar in international trade amid global economic uncertainties and shifting geopolitical dynamics.
