Addis Ababa, Jan 20/01/2026 (ABN)
Ethiopia has officially announced plans to localize the production of its national currency, the Ethiopian Birr, marking a decisive step toward economic resilience and monetary sovereignty. The initiative, revealed during Finance Forward Ethiopia 2026, demonstrates the government’s commitment to modernizing financial infrastructure and reducing dependency on external suppliers.
The localized production aims to conserve valuable foreign exchange reserves, reduce costs associated with importing currency, and enhance the security of the national currency. Oversight will be provided by Ethiopian Investment Holdings (EIH), ensuring alignment with long-term national investment priorities.
From an economic perspective, local currency production offers multiple advantages. First, it reduces foreign exchange outflows previously spent on printing and importing banknotes. Second, it stimulates local industries, including high-precision printing and security technologies, creating employment and developing technical expertise. Third, it strengthens monetary sovereignty, allowing Ethiopia to respond more effectively to economic shocks and implement sound monetary policy.
Experts emphasize that robust governance, monetary discipline, and institutional independence are critical to ensure price stability and maintain public confidence in the Birr. When paired with strategic fiscal policies, local production can support sustainable growth, financial stability, and national economic self-reliance.
Financial institutions and industry stakeholders widely welcome the initiative, highlighting its potential to enhance Ethiopia’s global economic standing and secure a more resilient, homegrown financial system.
