By John Ikani
Ethiopia and China have inked a currency swap deal, allowing them to trade directly in their respective currencies, the Birr and the Yuan. This move aims to fortify their economic ties and boost business between the two nations.
The agreement came to fruition during discussions between Ethiopian Prime Minister Abiy Ahmed and Chinese President Xi Jinping.
Ethiopian Finance Minister Ahmed Shide stated that the central banks of both countries have committed to working closely to streamline trade and improve financial cooperation.
The minister also revealed that China has offered Ethiopia 400 million yuan in financial aid, a gesture acknowledged by President Xi during their meeting.
According to the Ethiopian Ministry of Foreign Affairs, President Xi commended Ethiopia’s macroeconomic reforms, recognizing the country’s attempts to stabilize its economy and encourage growth.
The deal is anticipated to strengthen Ethiopia’s economic standing by decreasing its dependence on foreign currencies when trading with China, thus simplifying financial transactions.
This marks a significant development in the long-standing diplomatic and economic ties between the two countries, further cementing their position in Africa-China trade relations.
