A direct currency exchange deal has been established between Ethiopia and China in an effort to increase investment and trade between the two countries.
Following talks between Chinese President Xi Jinping and Ethiopian Prime Minister Abiy Ahmed, this decision was taken.
Ahmed Shide, Ethiopia’s Minister of Finance, told state media that the deal calls for coordination between the central banks of the two nations in order to carry out the currency swap.
Ahmed added that as part of the agreement, Chinese financial institutions would be able to conduct business in Ethiopia. He compared the proposal to a prior agreement signed with the United Arab Emirates and said it is expected to boost economic growth and fortify Ethiopia’s foreign exchange reserves.
