Ethiopia’s birr has depreciated by more than 10% against the United States dollar by the end of September 2025, placing it among sub-Saharan Africa’s weakest performing currencies this year. The sharp fall has worsened foreign exchange shortages, widened the premium in the parallel market, and heightened pressure on businesses struggling to access hard currency.

Market data from XS.com show the birr trading at around 144.50 per US dollar as of October 7, 2025, equivalent to about 0.0069 dollar per birr. Economists attribute the weakening to high inflation, a persistent trade deficit, and political uncertainties that have undermined investor confidence and reduced foreign inflows.

A World Bank report released on October 8, 2025, ranked the birr alongside the South Sudanese pound among the region’s poorest performing currencies. It pointed to enduring structural weaknesses in Ethiopia’s foreign exchange system, including an overvalued official rate and a chronic shortage of dollars that continue to distort the market.

Overall, the World Bank’s regional review placed the birr 18th among Africa’s 21 weakest currencies in 2025. A separate analysis by the XS.com Economic Institute positioned Ethiopia’s currency just below Yemen and slightly above Haiti in global strength rankings.

Despite growing pressure on the birr, the World Bank revised Ethiopia’s 2025 growth forecast upward by 0.7 percentage points, supported by resilient domestic demand and stronger performance in key industries. This revision places Ethiopia among the few African economies with upgraded growth prospects this year, alongside Nigeria and Côte d’Ivoire.

Between 2000 and 2019, Ethiopia’s per capita income expanded at an average annual rate of 5.9 percent, according to World Bank data. However, the birr’s recent depreciation has eroded purchasing power and increased import costs, adding strain on consumers and import-dependent businesses.