Ethiopia is planning to devalue birr in the next few days, reportedly. The devaluation is expected to happen at the heels of a key meeting between the International Monetary Fund and Ethiopian Government delegations on Monday.
The Government has been in talks with the IMF for months for a $3 billion bailout package. One of the main obstacles to the signing of final agreement between IMF and the government is the value of Ethiopian currency birr.
The official exchange rate of birr is 57 per dollar but in black market it is trading at around 120 per dollar. The IMF and World Bank have been urging the Ethiopian government to devalue birr significantly before any bailout package.
On Monday, IMF’s executive board is due to meet about Ethiopia. The executive board generally meets when the members vote on a new loan or review a loan. Some sources say that Ethiopia has already signed a staff level agreement with the IMF, but it will be made public next week.
Reportedly, the Ethiopian government is considering depreciation of birr by 10-15%. No official announcement has been made by the Ethiopian government about final agreement with IMF and birr devaluation.
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Dead government.
Wrong decision every time
What do you expect when you have corrupt government? Abiy Ahmed and his Finance minister have zero clue about our Ethiopian economy and the birr downfall.
Ethiopians will suffer never before. Ethiopian govrnment #Layman’s were playing horrific game on their own peoples.
It is more support again for illegal black market as still different will increase must open forigen bank and exchange house to be open keep birr and dollar same then it will help otherwise no use
I think so
Its mostly bad for many of Ethiopian people
Historical mistake.
If its true we will face a grate challenge that we haven’t seen ever
Hii
The simple principle of economics tells us it is the supply of foreign currency aka printed dollar ; determine the exchange rate. So with the same supply going 100, 110 or 120 birr per printed dollar won’t solve the current exchange rate black verses printed (official bank exchange rate for USD) issue.
Whatttttt whyyyyy 😭😭😭😭this is gone be the worst decision for our country because export-oriented industries might see some benefit, but what about those dependent on imports? They’re left to suffer, widening the income inequality gap. And while tourism might get a small boost, domestic consumption plummets due to soaring prices. It’s time our policymakers wake up and balance these outcomes carefully otherwise the country will never grow 😭
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