December 11, 2024

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gold prices in Ethiopia increased

Record-Breaking Gold Prices in Ethiopia Amid Birr Crisis

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Today, Ethiopia saw a remarkable rise in gold prices, reaching a new high. National Bank of Ethiopia announced the new gold prices. The price for one gram of 24-karat gold is now 7588.57 birr (around $77.20), a sharp increase from July’s price of 4,668.08 birr ($77.38). This more than 60% increase is primarily due to changes in the birr-dollar exchange rate. So, the gold prices in Ethiopia increased more than 60% in the first week of August 2024.

Recently, the Ethiopian government introduced economic reforms that adjusted the foreign exchange rate to align with market conditions. Since these reforms began, the birr has been depreciating continuously against the dollar. This decision was made to secure a $20 billion financial package from the International Monetary Fund and the World Bank.

Last week, Mamo Mehretu, the governor of the National Bank of Ethiopia (NBE) announced that the bank had received $2.5 billion from the International Monetary Fund (IMF) and the World Bank.

However, this rapid decline in the birr’s value is likely to lead to inflation, which is already a concern as people face rising food prices and increased living costs.

Although the Ethiopian government is taking decisive action against businesses that have raised prices on essential consumer goods. They have revoked the licenses of 542 businesses and suspended their operations due to unjustified price hikes, while 324 others received warnings. Read More…

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