Radar | Mar 06,2021
Jul 29 , 2024
In an extraordinary turn of events, the US Dollar surged against the Birr, reaching 74.7 Br in cash buying rates as of today, July 29, 2024. Selling rate is at 76.2 Br for a dollar. The state-owned Commercial Bank of Ethiopia (CBE) trades the Birr 30pc higher that the 58.6 Br traded late last week. The change marks a shift in the foreign exchange market, driven by the National Bank of Ethiopia's (NBE) unprecedented policy move towards liberalisation.
The NBE's recent bold strategy seeks to draw in foreign investments and bring stability to the financial ecosystem through a liberalisation policy. The new approach involves reducing restrictions and allowing market forces to exert more influence on exchange rates.
However, the immediate aftermath of this policy implementation is a steep drop in the Birr value, which has affected major currencies, with the US Dollar experiencing the most pronounced surge. The shift raises concerns among businesses and importers reliant on overseas goods, as costs associated with these imports are forecasted to substantially increase.
Market experts postulate that while the liberalisation measures may be daring and crucial for long-term economic alterations, it could bring about short-term instability and inflationary pressures. With the economy facing potential volatility, the NBE is anticipated to keep a close eye on the development and proactively instigate additional counteractive measures to offset any detrimental consequences on the economy.
Central Bank Governor Mamo Mehiretu vowed this morning to safeguard the Birr, disclosing that billions of dollars in resources to replenish the country’s foreign exchange reserves.
In Ethiopia's economic chronicle, the policy changes unveiled in unprecedented speed is etched as a transformative moment, holding the promise of restructuring the country’s economic future.
Radar | Mar 06,2021
Obituary | Mar 30,2024
Editorial | Jan 28,2023
Fortune News | Aug 11,2024
Editorial | Apr 13, 2025
In-Picture | Jul 06,2025
News Analysis | Mar 04,2023
Advertorials | Dec 19,2023
Fortune News | Dec 04,2021
My Opinion | 131819 Views | Aug 14,2021
My Opinion | 128203 Views | Aug 21,2021
My Opinion | 126147 Views | Sep 10,2021
My Opinion | 123767 Views | Aug 07,2021
Jul 5 , 2025
Six years ago, Ethiopia was the darling of international liberal commentators. A year...
Jun 28 , 2025
Meseret Damtie, the assertive auditor general, has never been shy about naming names...
Jun 21 , 2025
A well-worn adage says, “Budget is not destiny, but it is direction.” Examining t...
Jun 14 , 2025
Yet again, the Horn of Africa is bracing for trouble. A region already frayed by wars...
Loading your updates...