Ethiopia's Currency Gamble

 Ethiopia Insight published on 27 December 2025 an analysis titled "Ethiopia's Currency Gamble" by Mintesinot Melaku.

The IMF encouraged Ethiopia to adopt a floating exchange rate.  The author explains why Ethiopia was ill-prepared to implement this currency reform program.  The core problem is the inability to generate sufficient foreign exchange income.

China Expands Its Currency in Africa

 The Diplomat published on 3 November 2025 an analysis titled "Debt Relief as Currency Strategy: China's Renminbi Push in Africa" by Monique Taylor.

Kenya has converted part of its Chinese loans from U.S. dollars into renminbi (RMB), while Ethiopia is negotiating a similar arrangement.  This allows the borrowing country to reduce its debt servicing costs and permits China to turn debt distress into a strategic opening to expand the RMB's international use.

The BRICS, Dedollarization, and Africa

 The Liechtenstein-based Geopolitical Intelligence Services published on 21 August 2023 an analysis titled "Prospects for the Yuan Unseating the Dollar" by Junhua Zhang.  

The recent BRICS summit in South Africa gave rise to renewed discussion of replacing the US dollar with another global reserve currency such as the Chinese yuan.  During the first quarter of 2023, 59 percent of the world's foreign exchange reserves were held in dollars and 20 percent in Euros.  Only 3 percent were held in Chinese yuan.  

The BRICS (Brazil, Russia, India, China, and South Africa) agreed in Johannesburg to add 6 more countries (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE) on 1 January 2024, resulting in 3 African members in the 11 member organization.  While China has made significant progress in strengthening the yuan's status, it will not soon become the dominant global reserve currency.  The yuan's progress in this regard will depend on the stable growth of the Chinese economy.  

Debt Service Strains Kenya's Foreign Exchange Reserves

 The Standard published on 26 July 2022 an article titled "Forex Reserves Drop by Sh27b after Debt Repayment to China" by Dominic Omondi.

Kenya's Treasury repaid Chinese loans in July totaling $184 million in principal and $142 million in interest, most of it for the standard Gauge Railway from Nairobi to Naivasha.  Debt service is putting a strain on Kenya's foreign exchange reserves.  

Ethiopia and the International Monetary Fund

Ethiopia Insight posted on 11 December 2018 a commentary titled "It's Back to the Future as IMF Spots Opening" by Getachew T. Alemu, public policy consultant.

The IMF recently released its annual report on the Ethiopian economy. The author argues that while Ethiopia must make changes in its economic policy the IMF's suggested path appears to risk severe market shocks, widening inequality, and a reduced prospect of structural transformation.

Chinese Companies and Individuals Externalize Money from Zimbabwe

Zimbabwe's Times Live ran a story on 19 March 2018 titled "Who is Zimbabwe's Biggest Looter? Mnangagwa Names Names" by James Thompson. The report says President Emmerson Mnangagwa identified Chinese mining and retail companies as dominating the list of "externalization" of foreign currency, i.e. moving money that is not the legal tender of the country outside Zimbabwe.

In a follow-up article titled "China Rejects Mnangagwa's 'Looters List'" by James Thompson on 21 March 2018, Times Live reported that the Chinese embassy in Zimbabwe said the list is not accurate. The article put the amount of money moved by Chinese nationals out of the country at $363 million.

Ethiopia: Learning from China

A team at Fudan University's School of International Relations and Public Affairs in Shanghai published in November 2017 a study titled "Development and Industrialization in Ethiopia: Reflections from China's Experience" led by Yu Zheng and Shiping Tang.

The report offers suggestions for Ethiopian industrial policy and development based on lessons from China and other "Asian miracle countries" and on fieldwork in Ethiopia and China.

Five Ways China's Economic Crisis Will Affect Africa

The BBC published on 27 August 2015 an article titled "Five Ways China's Economic Crisis Will Affect Africa."  It looks at the impact on African currency values, trade, investment, tourism, and loans.