Ethiopia Devalues Birr 9.9% After Foreign Currency
Shortages
13 July, 2009 | By Jason McLure
Bloomberg
Ethiopia has been in talks with the International Monetary Fund over
loans to help it cope with the global economic downturn. In an
interview on June 19, Prime Minister Meles Zenawi said the country
was likely to devalue the birr as a condition of getting IMF financing.
The Horn of Africa nation’s trade deficit was $4.5 billion last year,
according to the World Bank.
Ethiopian Currency loses weight against US dollar
Jan.2, 2008 APA-Addis Ababa (Ethiopia) - The Ethiopian currency, the
Birr, fell against the United States dollar for the first time in a decade,
where one US dollar is being changed on Friday for 10 Birr, APA learns
here.
Accordingly, the National Bank of Ethiopia, is exchanging one US dollar
for 10.01 Ethiopian Birr, which is being seen here as an indication of a
downturn for the economy.
The exchange rate had been 9.95 Birr to one dollar since November
2008. However, for the past few months, Ethiopia has been hit by lack
of foreign currency, which forced the country to ban the black market
of foreign currency changing.
Despite that however, there are still shops and businessmen who are
continuing with the practice while hiding from the police. In the black
market, one US dollar is being changed for 11.25 Birr.
Private business owners are complaining about lack of foreign currency
at the National Bank of Ethiopia for their international business.
Melaku Kitaw, a private import and exporter businessman told APA that
it was becoming very difficult to get foreign currency from the National
Bank of Ethiopia since the past few months.
“We are unable to get foreign currency as we need it. We are being told
to wait for a months,” said Kitaw.
He said the government was being given priority in getting foreign
currency in order to buy medicine and other basic necessities.
“Because of this problem, the prices of commodities that are imported
to the country are on the rise,” he said.
TheEthiopian Prime Minister, Meles Zenaw said in his recent report to
parliament that the country’s imports exceeded its exports, which he
said was responsible for the foreign currency shortage.
Ethiopia is importing billions of dollars worth oil, machinery,
construction materials and medicines. It exports coffee, oilseeds,
leather, flower and agricultural products as well as livestock to a
number of countries in Europe and USA as well as in the Middle East.
Shortages
13 July, 2009 | By Jason McLure
Bloomberg
- Ethiopia devalued its currency, the
birr, 9.9 percent against the dollar on
July 10 after difficulty obtaining
foreign exchange led to shortages of
imported goods such as auto parts
and medical supplies.
- The country’s official exchange rate
fell to 12.444 against the dollar from
11.3247 on July 9, according to the
Ethiopia has been in talks with the International Monetary Fund over
loans to help it cope with the global economic downturn. In an
interview on June 19, Prime Minister Meles Zenawi said the country
was likely to devalue the birr as a condition of getting IMF financing.
The Horn of Africa nation’s trade deficit was $4.5 billion last year,
according to the World Bank.
Ethiopian Currency loses weight against US dollar
Jan.2, 2008 APA-Addis Ababa (Ethiopia) - The Ethiopian currency, the
Birr, fell against the United States dollar for the first time in a decade,
where one US dollar is being changed on Friday for 10 Birr, APA learns
here.
Accordingly, the National Bank of Ethiopia, is exchanging one US dollar
for 10.01 Ethiopian Birr, which is being seen here as an indication of a
downturn for the economy.
The exchange rate had been 9.95 Birr to one dollar since November
2008. However, for the past few months, Ethiopia has been hit by lack
of foreign currency, which forced the country to ban the black market
of foreign currency changing.
Despite that however, there are still shops and businessmen who are
continuing with the practice while hiding from the police. In the black
market, one US dollar is being changed for 11.25 Birr.
Private business owners are complaining about lack of foreign currency
at the National Bank of Ethiopia for their international business.
Melaku Kitaw, a private import and exporter businessman told APA that
it was becoming very difficult to get foreign currency from the National
Bank of Ethiopia since the past few months.
“We are unable to get foreign currency as we need it. We are being told
to wait for a months,” said Kitaw.
He said the government was being given priority in getting foreign
currency in order to buy medicine and other basic necessities.
“Because of this problem, the prices of commodities that are imported
to the country are on the rise,” he said.
TheEthiopian Prime Minister, Meles Zenaw said in his recent report to
parliament that the country’s imports exceeded its exports, which he
said was responsible for the foreign currency shortage.
Ethiopia is importing billions of dollars worth oil, machinery,
construction materials and medicines. It exports coffee, oilseeds,
leather, flower and agricultural products as well as livestock to a
number of countries in Europe and USA as well as in the Middle East.
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