Ethiopian Currency could lose up to 100 percent of its value due to the planned devaluation
borkena
Toronto – After a long time of back and forth backdoor negotiation and announced discussions with World Bank and IMF authorities from Morocco to the United States to Ethiopia, Abiy Ahmed’s administration is now making it official that he is kneeling to the imposition from the World Financial Institutions to significantly devalue Ethiopia’s currency. At one point, the World Bank officials spent over a week in Ethiopia “holding talks with Ethiopian officials.”
There are reports that the government is expecting over US $10 billion from the IMF and World Bank in the form of loan whose precondition is the further devaluation of Ethiopian Birr.
His government on Sunday announced the decision about it. It appears that due to the blowing effect it could have on the already chronic legitimacy crisis his government is experiencing, the changes are introduced embedded within the framework of disclosure about “Macro-Economic Policy Implementation.”
The government still argues that the introduced policy change – including the devaluation – is within the “framework of homegrown economic growth” plan.
The currency devaluation is presented as “Market based Foreign Exchange Rate Regime.” The government argues or it seems to argue that the devaluation will address negative trade imbalance and remove constraints to the private sector growth in the country.
The statement released from the office of the Prime Minister reads “…market-based foreign exchange rate regime is critical to relieving FX-shortages, removing constraints to private sector investment and growth, aligning the prices of the imported and exported goods and services with market realities. This approach also addresses imbalances in the balance of payments and offers numerous additional benefits…”
When Abiy Ahmed was named as Prime Minister in 2018 in a political arrangement within the then ruling coalition, Ethiopian People’s Revolutionary Democratic Front (EPRDF) – now defunct, one U.S. dollar was exchanged to 25 Ethiopian Birr. Currently the official rate of exchange in the banks is over 57 Ethiopian Birr.
However, it has been several months now since the government started the exchange rate at a rate of the black market when Ethiopians living abroad send money directly to a bank account in Ethiopia. For example, $US 1 was fetching over 115 Ethiopian Birr and $1 Cad was fetching about 86 Ethiopian Birr.
With the implementation of the “Macro Economic Policy” US$1 is expected to fetch over 200 Ethiopian Birr, apparently as the World Monetary Institutions dictated it following a series of back and forth meetings with Ethiopian officials.
The Ethiopian government is yet to disclose as to what the new exact exchange rate is .
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Ha ha! Imagine your wealth cut in half overnight! Take your money out of the banks and buy shit with it asap (house, car, …) or exchange it with the mighty dollar by hook or crook. Fuck the Abiy government and everything it stands for or does. Screw the IMF that is lending money to a worthless government that is actually going to buy more drones, AK-47, tanks, bullets and other weapons of murder and mayhem and use the rest for vanity projects such as the damn palace in the woods and corridor development when the entire country is boiling in the inferno of war, strife, hunger, prison, slavery, murder, rape, genocide, economic doom…A prosperity party…ha ha…laughable!! Ethiopia and Ethiopians are doomed!
Ted,
Ha haaaaa, Do you really understand such moves? or you are just bull***Ing with the stuff you don’t really understand? You can hate the king, but you can’t hate his great work my friend.
Note: Such moves are not easy to understand unless you are far away from backwardness and hate. Otherwise, the king knows what he is doing, and I love these types of decision and I do believe that good days ahead of us. In 10 years, it will also unlock and change all these dead brains in Ethiopia…
Simply, Madness of epic proportion!!!
The US debt is surpassing $35 trillion any day now. This crisis is not limited to the US, the entire Europe, UK & EU are in similar if not worse fiscal conditions.
Link = usdebtclock.org/
As a result of these developments, most economists and financial professionals are predicting a major market crash ( worse than 2008, if not ‘the great depression’ of 1930’s) within the next 6 to 8 months (between now and January or March 2025).
Unless the deal is delayed and executed well after the expected crash, or in the second half of 2026, to be on the safe side as well as to get better lower interest rate as well as to increase the purchasing power of the money borrowed.
Getting into a hefty sum of debt worth $10 billion at this particular junction in time, is simply madness, unless the planners are anticipating a ‘global debt jubilee’ announced by the Pope in May 2024, if taking place as announced, and want to ‘grab the money and run’…
Link = americamagazine.org/faith/2024/05/15/jubilee-2025-pope-francis-synod-parish-priests-247950
This is bad timing and bad planning; it is like buying a ‘lottery ticket’ as the nations ‘financial planning’ scheme, which is likely to end badly.
It is wise, to ‘Step back and take deep breath’!
“Destiny is what you create for yourself. Fate is when you fail to create your own destiny”,
SG
Be well.
Bad timing, or calculated move to develop resources that would make Ethiopia the 21st century bread and renewable-energy basket, or more vanity projects such as a palace in the PM’s hometown of Bechacha ( in the name of “job creation”)?
Happenings elsewhere:
” BETRAYAL! As American Household Budgets On Life Support!!!”
Link = youtube.com/watch?v=0Nt23EbSLT0&ab_channel=NeilMcCoy-Ward
“West Panic: Italy’s Meloni In Beijing For Desperate Reset, Russia Drops Major BRICS Update”
Link = youtube.com/watch?v=GGNjV-3IxSw&ab_channel=SeanFoo
“This is What it Looks Like Right Before a Depression Starts”, (9 months ago, (“good old days”))
Link = youtube.com/watch?v=zJrQQy2gLY0&ab_channel=HeresyFinancial
” $35 TRILLION DEBT WALL: Historic National Debt Surges, US Pays $2.4 Billion in Interest Daily”
Link = youtube.com/watch?v=ZmtUidKAlGU&ab_channel=LenaPetrova
“In general what politicians usually do is to go into debt, first and foremost. something that is deeply immoral, because it means that the carelessness of today, will have to be paid by future generations. Because that debt is future taxes. And those future taxes will be on our children and grandchildren, and upon people yet to be born, thus without any chance to defend themselves through voting. Therefore, this indebtedness is a political approach that is highly immoral…”
Argentina’s president Javier Milei
Be well.
Dear My Beloved Horn of Africans,
It is that time that comes to us every four years. Our young athletes from Ethiopia, Djibouti, Eritrea and Somalia are competing in various track and field events. There are athletes competing in freestyle swimming too. I know one thing for sure. Our son/brother the indomitable Biniam bin Girmay will bring us the hardware and make us all proud once again. Did you see how he won the stages in the Tour de France? With his final sprint he left every one in the dust. That young man should be honored by the AU. I hope Brother H.E. President Isaias will bestow the nation’s highest honor upon this gallant young man
Let’s all of us come together and root for these athletes from the four countries. The track and field competitions in which our athletes usually shine start on August 2, 2024. Let’s go!!!
This is a road to financial madness. It is an economic tailspin and debt trap to econiomic oblivion and slavery’ for long time. With so much internal conflict and curruption going on for so llong draining of whatever little budget and economy and local productivity, export and investment dwindling by the day, Abiy’s regime is no basically cash strapped and tha is the reason he has chosen this perilous econmic path. I would have said good luck with that to Abiy and his PP cronies if this cruel polvy is not severely impacting in teal time the lives of millions of poor household and majority of citizens in the country.
Plainview,
You don’t represent Plainview; you are totally opposite from that. Plainview represents flexible ability to learn and teach. You are stuck under tribalism, and I am afraid no one will teach you. Stay with your mud thoughts
Poor greedy diaspora that thought they were rich/will be rich by investing in Ethiopia, Abiy snuck his manhood up their you know what…ha ha ha! Folks, keep your wealth and money in countries that have proven track of security and stability. To think one can get rich quick in countries run by dumb chimpanzees such as Ethiopia is but the most foolish idea! Buy properties in US, Europe, Australia and live free and happy folks. Remember what that fucker Abiy said? “ I am about to make the biggest of changes and you idiots will forever be sorry if you don’t jump at the opportunities and pour your diaspora money” ha ha ha…The price of hope to one day go back to your country and live free and happy! Dumb greedy diaspora! Stop buying anything exported from Ethiopia! I mean everything from the food you eat to the cloth you were to everything! When in Rome, do as the Romans do! Live in the countries that gave you freedom, wealth, protections, prosperity etc. with the fullest of zest! Contribute in those countries with all your passion and energy! Be citizens of the world and let Abiy and co hung their miserable selves!
The days for all of to pay attention begin on August 02, 2024. Here is a rough schedule.
August 02, 2024 – Men’s 10,000m final
August 05, 2024 – Women’s 5,000m final
August 07, 2024 – Men’s 3,000 Steeplechase Final
August 09, 2024 – Women’s 10,000m final
August 10, 2024 – Men’s Marathon and Men’s 5,000m Final
August 11, 2024 – Women’s Marathon
There are other competitions athletes from the Horn of Africa participate but I found these to be more intense. Check your tv guides for local listings and timings.
Let’s cheer our Horn of African athletes in these competitions.
I also watch other competitions intently, like both men’s and women’s 100, 200, 400, 4×100, 4×200 and 4x400m finals in which I root for my American athletes.