In the midst of a Forex currency crisis, the National Bank of Ethiopia (NBE) has devalued Birr by 15pc and raised the interest rate by two percentage points to seven percent. The devaluation pegs the Ethiopian Birr at 26.91 to the dollar, up from 23.40 Br on the official market. The Central Bank justifies the move as an effort to control the inflationary pressure and prop up export earnings. Seven years ago, the government had made a 17pc devaluation resulting in inflation that had reached as high as 40pc. "Since investment return is high in Ethiopia, the devaluation won't cause an inflationary pressure and adversely affect import," said Yohannes.

Source: Ethiopian News October 10, 2017 12:11 UTC