January 19, 2025

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Ethiopian Birr Currency

Ethiopian Birr Ranked as One of the Weakest Currencies in Sub Sahara

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Ethiopian birr has been ranked among the weakest currencies in Sub-Saharan Africa, in a report published by the World Bank.

The Ethiopian birr, Nigerian Naira, and South Sudanese Pound are among the worst-performing currencies in Sub-Saharan Africa, according to the World Bank’s Africa Pulse report. 

“By August 2024, the Ethiopian birr, Nigerian Naira, and South Sudanese Pound were among the worst performers in the region,” the report stated.

In contrast, currencies like the Kenyan shilling have shown signs of recovery, appreciating by 21% year-to-date by August 2024. Despite this improvement, many African economies continue to face foreign exchange challenges.

Nigeria, along with other countries in the region, continues to face severe foreign exchange shortages and exchange rate pressures. The report highlights that “despite foreign exchange market reforms, such as the liberalization of the official exchange rate, the Nigerian currency continued to struggle.”

The impact of foreign exchange market reforms in Ethiopia is yet to be seen. Ethiopia introduced the macro economic reforms in July 2024, leading to significant devaluation of its currency birr.

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