Ethiopia’s birr has recorded the third weakest performance among global currencies tracked by Bloomberg, trailing only the Argentine peso and the Turkish lira, highlighting persistent pressure on the exchange rate amid ongoing debt restructuring efforts.
According to Bloomberg, the birr depreciated by more than 15 percent against the US dollar in 2025, making it one of the world’s worst-performing currencies this year. The report said the outlook for the birr remains closely tied to Ethiopia’s progress in restructuring its external debt, a key factor for restoring investor confidence and stabilizing the currency.
“Our view is one of gradual further depreciation, but slower than the recent spike,” Giulia Filocca, an analyst at S&P Global, told Bloomberg, pointing to debt restructuring progress as a critical benchmark for attracting investment and supporting the birr.
Ethiopia is seeking to conclude its debt overhaul under the Group of 20 Common Framework by mid-2026. The government has already reached a memorandum of understanding with members of the Official Creditor Committee — including China and France — to restructure about USD 3.5 billion in loans, Bloomberg reported. (Bloomberg)
