Ethiopia Devalued Birr

National Bank of Ethiopia (NBE) announced Birr is devalued by 15 percent starting from October 11, 2017.

According to The Reporter, the move by the central bank will bring a 3.45 Birr increase in the USD exchange rate.

It has been years since the World Bank and International Monetary Fund (IMF) requesting NBE to devaluate Birr as Birr has been overvalued for a long time. Their reason was enhancing the country’s export trade.

However, the move will negatively impact the country’s foreign debt basket, The Reporter read. Experts also warn the devaluation will trigger inflation as import will be expensive, the newspaper further noted.

It was 7 years ago that NBE last devaluated Birr. Back then the devaluation was 20 percent.

Addressing the join session of the House Peoples Representatives (HPR) and House of Federation yesterday, President Mulatu Teshome (PhD) had indicated exchange rate reform was planned.

Source: The Reporter

Exchange Rates

USD 27.9761  27.4275 
EUR 31.9011  31.2756 
GBP 35.7058  35.0057 
CAD 21.3835  20.9642 
AED 7.6156  7.4663