The rate, in percentage, of the Real Effective Exchange Rate Index (REERI) year-on-year drop, signalling that nominal depreciation is outpacing domestic inflation, an unusual configuration in Ethiopia’s historically high-inflation environment. This magnitude of real depreciation in a single year is extraordinary outside balance-of-payments crises or post-peg collapses. In most emerging and low-income economies, REER adjustments of five percent to 10pc annually are considered large.
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