Ethiopia’s Birr Drops 30% Following Currency Float and Removal of Forex Surrender Rules
Ethiopia’s birr dropped 30% against the dollar on July 29, falling from 57.48 to 74.73 birr per dollar. After the National Bank of Ethiopia (NBE) floated the currency and ended its fixed exchange rate regime.
This major devaluation is part of a broader macroeconomic reform aimed at creating a market-based exchange rate and securing a $10.7 billion loan package from the IMF, World Bank, and other creditors.
The NBE also removed foreign exchange surrender requirements and lifted import restrictions. Allowing more flexibility in foreign currency transactions and accounts. These changes are designed to address market distortions and support Ethiopia’s economic development and global integration.
Clever Robot News Desk 30th July 2024
