Although the first Birr dates back as far as the early nineties, the coins used in Ethiopia were Maria Theresa thalers and Menelik II talari. The Ethiopian Birr is the second most used currency in Africa after Nigeria’s Naira. The National Bank of Ethiopia and formerly the Bank of Abyssinia is the central bank. It has been in service since the Nineteen-Thirties. “We’ve made it very clear we want to reform our forex regime,” Eyob told Reuters in an October interview, “so the exchange rate unification remains one important policy goal, but we are just doing it gradually.The Ethiopian currency is called Ethiopian Birr. For example, Egypt’s pound weakened after it moved to a more market-determined forex regime under the terms of an IMF programme. Its government has turned for help to the IMF, which requires debt relief commitments from a country’s creditors before it agrees to a loan programme.Īdopting a more flexible exchange rate is also often a stipulation of the IMF. In 2020, the IMF recommended moving to a market-determined exchange rate to deal with an overvalued currency and foreign exchange shortages.Īfrica’s second most populous country requested debt restructuring in early 2021, but progress was held up by a two-year civil war in its Tigray region.Įthiopia’s government and the Tigray People’s Liberation Front, a rebel force-turned-political party, agreed on November 2 to stop fighting. The war displaced more than two million people and hurt the economy. Eyob Tekalign Tolina(PhD) January 19, 2023Įthiopia operates a managed exchange rate for the birr, allowing it to depreciate gradually against the dollar. A sensible macro reform is always our agenda but there should not be any concern about mere devaluation.
There is widespread rumor that devaluation is in the making. A sensible macro reform is always our agenda but there should not be any concern about mere devaluation.” “There is widespread rumor that devaluation is in the making,” Eyob Tekalign, state minister in the Ministry of Finance, said on Twitter on Thursday. Keep reading list of 4 items list 1 of 4 War on Gaza: What’s the impact globally? list 2 of 4 Israel-Hamas war affecting regional economies, warns IMF head list 3 of 4 China detained employee of Japanese trading firm, report says list 4 of 4 Indonesia’s TikTok Shop ban reveals mixed feelings on e-commerce revolution end of list
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