Ethiopian government officials, including the Governor of the National Bank of Ethiopia, have been engaged in ongoing discussions with representatives from the Bretton Woods institutions (the World Bank and the IMF) amidst a rising inflationary trend in the country.
Following the replacement of Yinager Dessie, the former governor of the National Bank of Ethiopia, by Mamo Mihretu, a former World Bank Staff member, speculations have emerged regarding the intentions of Abiy Ahmed’s government to potentially devalue the Ethiopian currency further. Presently, the value of one U.S. dollar exceeds 113 Ethiopian birr in the Parallel Market, while banks are selling it for less than 57 birr.
Recent reporting from the Ethiopian Reporter, a local newspaper, indicates that the National Bank of Ethiopia is considering a currency devaluation. However, the Bank has issued a statement refuting the accuracy of this report.
Given the likelihood of currency devaluations, there are concerns about the potential implications. An interview with Teshome Abebe, an economist, sheds light on these concerns.
You can view the interview below
Video : embedded from Anchor media YouTube channel
Cover photo : screenshot from the video
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