Inflation Hit Ethiopia Demonetizes Currency To Curb Cash HoardingThe Ethiopian government has unveiled a new set of banknotes that are expected to help authorities in curbing cash hoarding, illegal trade and illicit financial flows. The move is also aimed at boosting the liquidity of banks that are struggling to cope with Ethiopia’s cash-based economy. On the other hand, Ethiopian citizens are expected to replace their old notes within three months. The Ethiopian economy, which been hit by the global pandemic Covid-19, faces increased inflationary pressures after the figure topped 20% in August. Both the World Bank and IMF have now downgraded the country’s forecasted annual growth to 3.2% from 7.2%.

Source: Ethiopian News September 17, 2020 21:11 UTC