October 4, 2024

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Ethiopian Birr against US Dollar

Ethiopia Birr Again Declines Against US Dollar in Black Market

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Ethiopian Birr recorded another fall against US Dollar in black market today. The birr has been losing against dollar since last month when the Ethiopian government announced macro economic reforms and liberalized foreign exchange market.

The birr fell to 132 against US dollar in parallel market today. Last month, when the government linked currency exchange rates to open market, it said that the move would close the gap between birr’s values in open and black markets. Before these reforms official dollar to birr exchange rate was around 57 but in black market, dollar was available for around 120 birr.

Since the introduction of these reforms, birr has lost more than 100% of its value against dollar. Today, the Commercial Bank of Ethiopia (CBE) set selling price of US Dollar at 124 birr.

It seems that dollar is again rising in black market, weakening the worth of birr. One of the reasons behind the flourishing of the black market is that dollar is not available at announced prices in banks.

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