March 21, 2025

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Ethiopian Birr continued to devalue

Ethiopian Birr Continues to Devalue Against US Dollar

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The Ethiopian Birr continued to devalue against the US dollar. Today, the Ethiopian Birr has decreased again against the US dollar. The Ethiopian Birr started to fall in July 2024 when the Ethiopian government introduced macroeconomic reforms and liberalized the foreign exchange market.

This morning, the Commercial Bank of Ethiopia (CBE) and private banks released new foreign exchange rates. Commercial Bank of Ethiopia and other banks devalued the Birr currency. CBE raised the selling price from 115.3934 Birr to 119.0033 Birr. Awash Bank raised the dollar selling price to 121.5896 Birr and Bank of Abyssinia is selling the dollar at 121.3961.

Before these macroeconomic reforms by the Ethiopian government, the official exchange rate was about 57 Birr per dollar.

While the Ethiopian government hopes that liberalization of the foreign exchange market will rationalize and stabilize the value of Birr. Since introducing these reforms, the Ethiopian Birr started to devalue and has lost more than 100% of its value against the dollar.