A vendor counts out Ethiopian birr banknotes at the Shola market in Addis Ababa, Ethiopia, on Thursday, Dec. 7, 2023. The Horn of Africa nation has been seeking to rework its liabilities since 2021 as a civil war in the northern Tigray region soured investor sentiment and sapped economic growth. (Bloomberg) -- Ethiopia plans to float its currency, the birr, as part of ongoing macroeconomic reforms, according to Prime Minister Abiy Ahmed. One of the program’s objectives is “correcting foreign exchange distortions and solving the structural balance of payments deficit problems,” Abiy said in a lengthy policy statement posted on X, formerly Twitter. Abiy said a market-based FX regime is critical to relieving currency shortages, removing constraints to private sector investment and growth, and aligning the prices of imported and exported goods and services with market realities.
