September 14, 2024

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Ethiopian currency fell

Ethiopian Currency Fell Again on Weekend

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Ethiopian Currency Birr again fell today. Despite being Saturday today, the Commercial Bank of Ethiopia (CBE) published new currency exchange rates.

Yesterday, dollar selling rate announced by the CBE was 85.6201 birr per dollar. Today it rose to 101.4347. Since Monday, the birr has fallen around 76% against dollar.

The decline of birr began after the Ethiopian government introduced macro economic reforms on Sunday to get a financial bailout package from the IMF and World Bank. The two financial institutions pledged to give around $20 billion to the Ethiopian government over a period of next 10 years. The government has received around $2.5 billion this week.

The rapidly declining value of birr has created shockwaves among the business community. The government says that it would ensure financial stability to help business community.

The government will intervene if the market system as a problem, said the Governor of the National Bank yesterday.

The governor of the National Bank of Ethiopia, Mamo Mehretu, spoke on Friday. He talked about changes in foreign currency exchange system. He said there was a wide gap between the regular and parallel market currency exchange rates.

Mamo said, “Determining the currency rate by the market will play a significant role in encouraging exports and investment by overcoming illegality and corrupt practices, making the currency system stable and healthy.”

“If the market system has a problem in this process, the National Bank will intervene and fix it,” he said.