Russia to Begin Publishing Official Exchange Rate for Ethiopian Birr
Moscow, July 10, 2025
The Central Bank of Russia has announced that it will start publishing an official daily exchange rate for the Ethiopian birr (ETB) against the Russian ruble (RUB), marking a significant step in strengthening financial ties between the two nations. The new exchange rate, set to take effect next week, is expected to facilitate smoother trade and economic cooperation amid Russia’s growing engagement in Africa.
The decision reflects the deepening economic partnership between Russia and Ethiopia, particularly in key sectors such as agriculture, energy, and infrastructure development. Over the past few years, Russia has increased its investments in Ethiopia, including involvement in major projects like the Grand Ethiopian Renaissance Dam (GERD) and other strategic initiatives. By establishing an official exchange rate, Moscow aims to reduce reliance on intermediary currencies like the US dollar and promote direct ruble-birr transactions.
Elvira Nabiullina, Governor of the Central Bank of Russia, emphasized the importance of this move in enhancing bilateral trade. “Publishing an official exchange rate for the Ethiopian birr will provide greater transparency and efficiency for businesses operating between our two countries,” she said. “This initiative underscores Russia’s commitment to fostering stronger economic relationships with African nations, particularly Ethiopia, which is a key partner in the region.”
The Ethiopian government has welcomed the decision, with officials from the National Bank of Ethiopia stating that it will help streamline financial transactions and boost economic collaboration. Ethiopia has faced persistent foreign exchange shortages in recent years, and the direct ruble-birr exchange mechanism could ease some of these pressures by facilitating smoother trade settlements.
Financial analysts suggest that the move could have broader implications for trade and remittances. Ethiopian expatriates working in Russia may benefit from more competitive exchange rates when sending money back home, while businesses engaged in bilateral trade could see reduced currency conversion costs. Additionally, the step aligns with Russia’s broader strategy of promoting the ruble as an alternative reserve currency in trade with non-Western partners.
Geopolitically, Russia’s decision to formalize the ruble-birr exchange rate signals its intent to expand influence in Africa, where it has been actively competing with Western and Chinese economic interests. By strengthening financial linkages with Ethiopia, Moscow is positioning itself as a key economic player on the continent, particularly in nations seeking alternatives to traditional Western-dominated financial systems.
The Central Bank of Russia will begin publishing the RUB/ETB exchange rate on July 17, 2025, with daily updates available on its official website. The rate will be determined based on market conditions and interbank trading data, ensuring accuracy and reliability for businesses and individuals.
As Russia and Ethiopia continue to deepen their economic partnership, this move could pave the way for further financial integration, including potential agreements on ruble-based trade settlements and joint investment initiatives. Observers will be watching closely to see how this development influences broader economic trends in Russia-Africa relations in the coming years.
The introduction of an official ruble-birr exchange rate marks a milestone in bilateral relations, highlighting the evolving dynamics of global trade and the increasing role of alternative currencies in international commerce. With both nations poised to benefit, the move could set a precedent for similar arrangements between Russia and other African economies in the future.
