Ethiopia is moving to localise the production of its national currency, the Ethiopian birr, as part of a broader effort to strengthen monetary sovereignty and reduce reliance on foreign suppliers. Prime Minister Abiy Ahmed unveiled the plan at the Finance Forward Ethiopia 2026 conference, describing it as a strategic step to limit external vulnerabilities and support long term economic stability, according to Business Insider Africa.
The initiative will be overseen by Ethiopian Investment Holdings, the state owned investment vehicle established in 2021 to manage key national assets. Officials said the move aligns with the government’s wider reform agenda to deepen control over critical economic infrastructure and modernise the country’s financial system, as reported by BusinessDay.
The currency localisation plan comes alongside far reaching monetary reforms led by the National Bank of Ethiopia, including a shift toward a more market based exchange rate regime and changes to long standing interest rate controls. These measures are intended to improve policy transmission, enhance transparency and rebuild confidence in the financial system, according to Addis Insight’s reporting on recent central bank policy adjustments.
While the birr has faced depreciation pressures during the reform process, authorities argue that tighter domestic control over currency issuance, combined with broader macroeconomic reforms, will help anchor stability over time and create a more resilient foundation for growth and investment.
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