The International Monetary Fund (IMF) is set to visit Ethiopia, where the government faces a critical decision that could determine the success of a bailout pivotal to the country's debt restructuring. The pressing issue is whether to allow the national currency to depreciate, potentially causing inflation and societal instability. Currently, the government is negotiating with the IMF to borrow approximately $3.5 billion, with a similar amount from the World Bank. With living costs already on the rise, the potential currency devaluation could further burden Ethiopians. She believes that foreign exchange reforms will be a crucial aspect of the IMF negotiations.

Source: Ethiopian News January 15, 2024 13:16 UTC