Central Bank Tweaks Rates While the Birr Holds Its Breath
The foreign exchange market had a telling week, and the story was all in the margins. Last week, the Central Bank nudged its official cash-buying rate from 130.47 Br to 132.17 Br for a dollar, a small but steady slide that reaffirmed the Brewed Buck's continuing weakness.
The real issue, though, was in the gap between what the Central Bank paid for dollars and what it charged to sell them. That spread opened the week on May 12, 2025, at a roomy 2.39pc, retreated to a whisker-thin 0.01pc by midweek, and finished at 0.41pc six days later. In a market accustomed to rigid, predictable spreads,...