Why Ethiopia wants to trade without relying on the US dollar
Ethiopia has announced plans to reduce its dependence on the US dollar in international trade by using other currencies for deals with key partners.
The country’s Ministry of Finance said it is working on ways to allow trade in a mix of currencies, including those of countries it has close economic ties with.
Officials say the shift is meant to make trade easier, protect Ethiopia’s interests, and reduce risks linked to relying on a single currency.
State Minister of Finance Eyob Tekalign said Ethiopia has already made arrangements with some countries, including the United Arab Emirates, to carry out trade using their own currencies.
Ethiopia, like many developing nations, faces challenges related to foreign currency shortages. By using a wider range of currencies, the government hopes to improve its trade balance, lower costs, and attract more investment.
The move comes at a time when some other countries, especially in the Global South, are also exploring alternatives to the US dollar in response to economic pressure and shifting global alliances.
The image used for this article was AI-generated.
This story is written and edited by the Global South World team, you can contact us here.
