Ethiopia is shifting to trade in currencies like the dirham to reduce dollar dependence and strengthen global investment ties.
Ethiopia is working to reduce its dependence on the U.S. dollar by trading with other currencies. The goal is to strengthen international trade ties, protect the local economy, and maintain a balanced trade structure.
In a statement released on July 12, the Ministry of Finance said it has signed deals with countries willing to trade using their own currencies. One such partner is the United Arab Emirates (UAE).
State Minister of Finance Eyob Tekalign told the Ethiopian Broadcasting Corporation (EBC) that the government is working on more agreements to support this shift.
“Using multiple currencies will help us reach more markets and reduce the risks tied to relying on the U.S. dollar,” he said.
The move is seen as part of Ethiopia’s plan to attract more foreign investment, improve economic flexibility, and protect against global currency shocks.
Ethiopia’s decision mirrors a broader trend across Africa. Many countries are exploring a single continental currency as part of the African Continental Free Trade Area (AfCFTA). The proposed currency—possibly called the Afriq or Afro—aims to boost regional trade and financial stability under the guidance of the African Union (AU).
By expanding currency options, Ethiopia hopes to improve trade competitiveness and align with long-term African integration goals.
