Ethiopian currency falls sharply after big policy changeThe country has been struggling with chronic foreign currency shortages particularly in recent years. The value of Ethiopia's currency has fallen by 30% against the US dollar after the government relaxed currency restrictions, one the country's biggest banks, the Commercial Bank of Ethiopia, has said. Under the new policy announced by the central bank, the value of the Ethiopian currency - the birr - will be set by the market. Importers were often forced to turn to the parallel market to purchase dollars because of a chronic shortage of foreign currency, meaning that some of the higher costs have already been priced in. But there are fears that the value of the birr might now continue to fall below the rate it was fetching on the parallel market.

Source: Ethiopian News July 29, 2024 14:34 UTC