Ethiopia, Russia Begin Trade in National Currencies

Ethiopia and Russia, two BRICS member countries, have started bilateral trade, accepting mutual payments in birr and rubles, the national currencies, abandoning the use of the US dollar. Ethiopian Ambassador to Moscow Genet Teshome Jirru (pictured) told the TASS news agency that “the process is still at an early stage and it is too early to provide accurate statistics.”

According to the head of the Ethiopian diplomatic mission, “both countries are committed to developing practical solutions acceptable to both sides.” The ambassador also emphasized that there are many financial benefits to conducting trade in local currencies: “Participants in Ethiopia-Russia trade will no longer suffer from harmful external mechanisms such as exchange rate fluctuations or international sanctions.”

“Even if there were no Western sanctions, bilateral trade in local currency is still very profitable,” Teshome said, adding that “it eliminates transaction costs.” According to international analysts, the Ethiopian ambassador’s statements seem to indicate that the BRICS countries have abandoned the idea of creating their own common currency to replace the dollar. US President Donald Trump has threatened sanctions against the BRICS countries if they introduce their own currency to separate themselves from the dollar.