Ethiopia's Currency Crisis: Birr Weakens Against Multiple Currencies

The Ethiopian Birr has weakened significantly against various foreign currencies over the past year. An analysis of National Bank of Ethiopia exchange-rate data between August 20, 2025 and August 20, 2026 shows that the currency's decline was fastest against the Australian dollar, with a 25.74 percent increase in the number of Birr required to purchase one AUD.

This is followed closely by the Norwegian krone (25.65 percent) and South African rand (24.09 percent). The US dollar, on the other hand, ranks 14th among the 19 currencies examined, with a 14.72 percent increase in the price of one USD from around 141.55 birr to 162.39 birr.

The Chinese yuan is a significant concern for Ethiopia's economy, as it accounts for a large portion of the country's imports. The Birr has lost 22.44 percent of its value against the yuan over the past year, with one CNY costing around 24.13 birr by August 20, 2026.

This increase in the cost of Chinese goods can feed through to businesses and households, complicating assumptions that the dollar rate alone captures the extent of Ethiopia's imported exchange-rate pressure.