Ahmed Ali Ethiopia, along with Egypt and Algeria, has applied for membership in the economic consortium of Brazil, Russia, India, China, and South Africa, widely known as BRICS. The Ethiopian Foreign Affairs Ministry believes that joining this group will play a vital role in protecting and advancing its national interests.
Protecting Ethiopia’s National Interests
Recognized as one of the fastest-growing economies in Africa, Ethiopia is the most recent African nation to express interest in becoming a part of the BRICS economic bloc. The Northeast African nation, which is currently engaged in a violent conflict with Tigray rebels, is aligning its ambitions with those of Egypt and Algeria to join BRICS.
As per a report by The East African, the country’s Foreign Affairs Ministry views joining an international organization like BRICS as a strategic move to further Ethiopian national interests.
“Being a founding member of international organizations like the AU [African Union] and the UN [United Nations], and with our ongoing efforts to secure our national interests, it is crucial to participate in blocs such as BRICS,” the ministry was quoted as saying.
Both Ethiopia and Egypt have been dealing with a dearth of foreign exchange, which has led to an unprecedented disparity between the official and parallel market exchange rates of their currencies against the U.S. dollar. The National Bank of Ethiopia (NBE) has sought to manage this issue by restricting the amount of U.S. dollars that residents can transport outside the country.
However, Ethiopia’s potential integration into BRICS – which is on the verge of introducing an alternative reserve currency – could help mitigate its reliance on the US dollar. This aspiration of Ethiopia coincides with a broader trend among African nations to reduce the U.S. dollar’s dominance in intercontinental trade.
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Table Of Contents
Frequently Asked Questions (FAQs) about Ethiopia BRICS Membership
What is BRICS?
BRICS stands for Brazil, Russia, India, China, and South Africa. It is an economic bloc formed by these five countries to enhance cooperation and promote economic growth among its members.
Why is Ethiopia seeking BRICS membership?
Ethiopia aims to join BRICS to safeguard its national interests and address challenges such as foreign exchange shortages. By becoming a member, Ethiopia hopes to reduce its dependence on the U.S. dollar and explore opportunities for economic growth and cooperation with BRICS countries.
How will joining BRICS benefit Ethiopia?
Joining BRICS could provide Ethiopia with access to a global institution that can help advance its national interests. It may offer opportunities for economic collaboration, trade, and investment, while also potentially reducing reliance on the U.S. dollar through the bloc’s plans for an alternative reserve currency.
What are the reasons behind Ethiopia’s interest in reducing dependence on the U.S. dollar?
Ethiopia, like Egypt, has faced challenges related to foreign exchange shortages. The gap between the official and parallel market exchange rates of its currency against the U.S. dollar has widened. By diminishing reliance on the U.S. dollar, Ethiopia aims to mitigate the impact of these shortages and stabilize its economy.
How does joining BRICS align with Ethiopia’s existing international engagements?
Ethiopia has been a founding member of global institutions such as the African Union (AU) and the United Nations (UN). Joining BRICS would further expand Ethiopia’s participation in international organizations and provide an additional platform for pursuing its national interests in the global arena.
Are other African countries also interested in reducing U.S. dollar influence in trade?
Yes, there is a growing trend among some African nations to decrease the dominance of the U.S. dollar in intra-continental trade. Ethiopia’s desire to join BRICS aligns with this trend, as African countries explore alternative currencies and regional economic cooperation to enhance trade and reduce dependency on external currencies.
More about Ethiopia BRICS Membership
- BRICS Official Website
- African Union Official Website
- United Nations Official Website
- Ethiopian Foreign Affairs Ministry
- The East African – Ethiopian Foreign Affairs Ministry
- National Bank of Ethiopia
4 comments
ethiopia joining brics is a smart move they can secure their national interests and reduce reliance on the us dollar! go ethiopia!
i’m not so sure about this brics thing for ethiopia. they should focus on resolving the conflict with tigray rebels first before diving into international alliances. priorities, people!
wow, brics could help ethiopia with their forex issues and maybe they’ll get rid of tht usd gap. good news for ethiopia’s economy!
ethiopia wants to join brics, huh? interesting, it could be a big opportunity for them to grow their trade and maybe lessen the us dollar’s influence. fingers crossed for them!