ADDIS ABABA – The 2024 BRICS summit proposed new paper money for member countries, benefiting Ethiopia and other nations by promoting an alternative hard currency, national interests, and increasing Ethiopia’s international economic relationships.
Foreign Affairs Institute Training Director General Melaku Mulualem said that this currency has a lot of advantages for Ethiopia and other member countries. It will be a good alternative hard currency to USD, EURO, and others. This currency will increase Ethiopia’s international economic relationships with other countries.
This impact will be seen after the implementation of the proposed currency of BRICS. It also minimizes the black market for hard currencies and minimizes injustices in global economic globalization.
The proposal shows the member countries’ commitment to having their own prominent currency for trading among themselves. This is a good initiative to apply the group’s decision to have a common currency. In the proposed paper money we also see the flag of Ethiopia and other member countries, he stated.
Ethiopia can import and export products from member countries using the new currency by minimizing transaction costs. It is also a good opportunity to pay back loans using the new BRICS currency. This helps the economy of Ethiopia which suffered from the scarcity of dollars in the national bank, he noted.
The use of BRICS currency will also help to counter inflation in the country. This is to mean that the exchange rate between Birr and USD will be stable. Thus devaluation of the Ethiopian currency will be checked sometime in the future.
According to him, the people of Ethiopia will not suffer from the economic inflations caused by the USD. Investors from member countries can also get an advantage of alternative currency to invest in Ethiopia.
BY ESSEYE MENGISTE
THE ETHIOPIAN HERALD THURSDAY 21 NOVEMBER 2024
