Ethiopia has seen a notable increase in gold prices today, reaching a record high. The National Bank of Ethiopia announced that the price for one gram of 24-karat gold is now 10,762.7946 birr (around $86.30), which is a significant rise from August’s price of 7,588.57 birr ($77.20). This marks an increase of around 42%, primarily driven by changes in the birr-dollar exchange rate.
If you compare the gold prices in Ethiopia in August 2024 with July 2024, prices increased more than 60% during the first week of August 2024. The price in August for one gram of 24-karat gold was 7588.57 birr (around $77.20), a sharp increase from July’s price of 4,668.08 birr ($77.38).
The Ethiopian government recently implemented economic reforms to adjust the foreign exchange rate. These changes aimed to align the rate more closely with market conditions. As a result, the birr has steadily lost value against the dollar. This strategy seeks to secure a $20 billion financial package from the International Monetary Fund and the World Bank.
However, this rapid decline in the birr’s value will likely cause inflation. People are already facing rising food prices and higher living costs.
This week, IMF staff and officials of Ethiopia have reached a staff-level agreement on economic policies. This agreement concludes the first review of a four-year Extended Credit Facility (ECF) arrangement worth $3.4 billion. If the IMF Executive Board approves it, Ethiopia will gain access to about $345 million in financing.
Other Stories
Ethiopian Coffee Industry Offers Incentives for Investors
More Stories
Addis Ababa Police Announces Road Closures on Irreechaa
Ethiopian Birr Continues to Fall Against US Dollar in Black Market
Emebet Melese Appointed as the President of Development Bank of Ethiopia