Ethiopia's currency reform led to a one-third devaluation, affecting citizens with rising prices for essential goods.

Ethiopia's recent currency reform, allowing the birr to float freely against the dollar, resulted in a one-third devaluation, impacting citizens with rising prices for essential goods. With imports at $23 billion and exports only $11 billion, the government faced pressure from the IMF and World Bank to implement the change. Though aimed at enhancing export competitiveness and foreign currency access, many Ethiopians, particularly those below the poverty line, are struggling amid persistent inflation and economic instability.

September 21, 2024
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