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Ethiopia and China Seal Currency Swap Deal to Boost Trade Efficiency

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  • Agreement allows direct trade in birr and yuan, bypassing the US dollar
  • Move aims to ease foreign exchange pressure and support Ethiopia’s economic reforms

Addis Ababa, Ethiopia – At the Forum on China-Africa Cooperation (FOCAC) summit held in Beijing from September 4-6, 2024, Ethiopia and China announced a landmark currency swap agreement. The deal, unveiled by Ethiopia’s Finance Minister Ahmed Shide, allows the two countries to trade directly in their local currencies—the birr and yuan—bypassing the US dollar. This initiative aims to enhance trade efficiency, reduce transaction costs, and alleviate pressure on Ethiopia’s dwindling foreign exchange reserves.

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