Facing a severe foreign exchange shortage, Ethiopia has signed a currency swap agreement with the United Arab Emirates (UAE).
Under the agreement between the National Bank of Ethiopia (NBE) and the Central Bank of the UAE (CBUAE), the two countries will exchange up to dirhams 3 billion ( USD 816.79 million) and birr 46 billion. This arrangement is intended to help alleviate Ethiopia’s forex crunch by reducing reliance on US dollars.
The currency swap is part of Ethiopia’s broader efforts to stabilize its economy, which also include stalled negotiations with the International Monetary Fund and the World Bank for debt restructuring and additional funding.
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