Birr in Tumble, Reform Rhetoric Meets Bitter Economic Realities
Grand ambitions have long driven Ethiopia's successive leaders, but they remain weighed down by deep structural vulnerabilities. But, nowhere is this more evident than in the monetary policy front, where policymakers let market forces guide Birr's value against a basket of major currencies.
The bold policy measure, introduced after 50 years, initially reduced the gap between the official and parallel exchange rates from more than 100pc to around five percent. Yet, barely six months later, the gap has climbed toward 25pc, raising doubts about whether the reform will be truly maintained. It s...