November 4, 2024

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Ethiopian birr in black market

Ethiopian Birr Continues to Fall Against US Dollar in Black Market

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

Currently, the birr is trading at 138 to the dollar in the parallel market. The government’s decision to align currency exchange rates with open market values aimed to bridge the gap between official and black market rates. Before these macroeconomic reforms by the Ethiopian government, the official exchange rate was about 57 birr per dollar, while the black market rate was around 120 birr.

Since introducing these reforms, the birr has lost more than 100% of its value against the dollar. Today, the Commercial Bank of Ethiopia (CBE) is selling dollars at 123.63 birr. One of the reasons for the dollar’s rise in the black market is its unavailability at official bank rates.