Ethiopian birr weakest currency in sub-Saharan Africa in 2025, World Bank reports
via Tadias1 hour ago2 min read
The Ethiopian birr was the weakest currency in sub-Saharan Africa in 2025, according to the World Bank’s Africa Economic Update. The report indicates the birr lost approximately 18 percent of its value year on year by the end of December 2025. This performance is attributed to sustained foreign exchange pressures and challenges within ongoing foreign exchange market reforms, with a widening gap between official and parallel market rates. The National Bank of Ethiopia has been refining its foreign exchange measures, including raising limits on selected current account transactions, to address market distortions and improve liquidity. In contrast, South Sudan's pound also weakened significantly, primarily due to disruptions in oil production and export routes. While Ethiopia faces currency pressure, its inflation is easing, and export performance remains relatively steady. The country's growth outlook is expected to be supported by agriculture and expanding electricity generation capacity, though geopolitical tensions in the Middle East could impact global energy prices and complicate monetary adjustments.
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