ZWD will serve as the domestic high-growth asset, while RLUSD serves as the external anchor. The population will hold ZWD to bet on the nation's economic recovery. If restoration successfully stabilizes the country, the ZWD appreciates. This incentivizes the population to hold ZWD, as holding ZWD becomes an investment in national growth.
Just a few years ago, the Ethiopian Prime Minister, Abiy Ahmed and Eritrean President, Isaias Afwerki, were close political allies fighting together against the Tigrayan People’s Liberation Front in northern Ethiopia. The two countries' historically strained ties were restored in 2018, when the Ethiopian leader reopened the border, brokering peace with Asmara. Today, however, Ethiopia’s renewed ambitions about gaining access to the Red Sea opened a new rift between the two neighbours. Ethiopia is also accusing Eritrea of colluding with a banned Tigrayan faction to stoke war once again. Both nations are increasing their military deployment near the shared border, sparking concerns about the return to conflict. With the tensions between Ethiopia and Eritrea mounting again, can they be pulled back from the brink?
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