Ethiopian Birr Falls to Record Low in Parallel Market
Ethiopian Birr has fallen to record low against the US Dollar in parallel black market. The dollar is being sold for 180-185 birr in black market.
The fall of the Ethiopian birr began in July 2024 when Ethiopian Prime Minister introduced macro economic reforms. Foreign exchange market. banking, retail and several other sectors of economy were liberalized. Back then official birr-dollar exchange rate was 57 birr, while in black market it was 115-120 birr.
The government hoped that determination of foreign exchange rates by the market will stabilize birr after slight decline. However the decline in the value of birr has been non stop since then. Official birr-dollar exchange rates stands around 160 birr, but in black market it is already touching 185 birr. Despite the liberalization of foreign exchange market. the parallel black market could not be killed. Dollar’s Rising demand and its lack of hurdle free supply through official channels kept the parallel market alive.
