• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Ethiopia’s Abiy Wants Currency to Weaken to Street Market Levels

1 year ago
in Business, Features, highlights, Home, home-news, latest News, Markets
1 min read
0 0
0
59
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Ethiopia’s Abiy Wants Currency to Weaken to Street Market Levels

Ethiopian Prime Minister Abiy Ahmed berated banks for keeping the exchange rate of the nation’s currency at much stronger levels than what traders in the parallel market were offering.

The Horn of Africa nation on Monday removed its peg to the dollar resulting in the birr depreciating 23% to 74.74 against the dollar. By Thursday it was trading at about 80 birr, compared to 113 birr that street traders were offering. Their rate has since moved to 118 birr per dollar.

“What you’re doing is not right,” Abiy told bankers in comments aired on the state-run broadcaster on Thursday. “We told you to unify the official rate with the parallel market rate, but you are crawling.”

Hours later, Awash Bank, one of the country’s biggest privately held lenders, offered to sell the birr at 94.50 per dollar. East Africa’s biggest economy floated the currency to win a $3.4 billion bailout from the International Monetary Fund and lure foreign investors.

Abiy is concerned that a large spread between the official and parallel rates will deter much-needed dollar inflows. The nation had reserves sufficient to cover just 0.5 months of imports in the year that ended July 7.

“Our goal was to minimize the gap between the parallel and official markets,” Abiy said.

RelatedPosts

Top Three African Countries Leading the Golden Visa Race

Hot Money Accounts for 90% of Nigeria’s Capital Importation

President Mahama Urges Ghanaians to Channel Helicopter Tragedy Grief into Renewed Commitment and National Progress

The spread resulted in residents hoarding foreign exchange waiting for the currency to weaken further, street traders said.

State-owned Commercial Bank of Ethiopia, the nation’s biggest, was trading currency at 85.62 to the greenback. Dashen Bank offered birr at 98.05 to the dollar, 41% weaker than a week ago.

Ethiopia has struggled with securing foreign exchange in recent years as exports failed to keep up with rising imports. Two years of civil strife also unnerved investors and forced concessional lenders to pause aid, restricting flow of much-needed funds.

The IMF program helped unlock another $16.6 billion in commitments from the World Bank and could lead to the restructuring of a portion of its debt by both bilateral and commercial lenders.

Source: bloomberg
Via: norvanreports
Tags: currencyEthiopiaEthiopia’s Abiy Wants Currency to Weaken to Street Market LevelsStreet Market Levels

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

How Dirt Batteries Could Power the Energy Transition

Gold Futures Jump to Record High on US Tariff Surprise

CHAN 2024: Tanzania Advance to Quarter Finals; Mauritania Revive Campaign With Win Over C.A.R

Sinner and Swiatek Dominate in Cincinnati Open Second Round

Chelsea Seeks to Build on Club World Cup Success with Ambitious New Signings

BoG Reports 15.19% Decline in Dud Cheques Issued in 2024

Trending

Features

Top Three African Countries Leading the Golden Visa Race

August 10, 2025

Top Three African Countries Leading the Golden Visa Race Global investors are increasingly seeking flexible residency and...

Hot Money Accounts for 90% of Nigeria’s Capital Importation

August 10, 2025

President Mahama Urges Ghanaians to Channel Helicopter Tragedy Grief into Renewed Commitment and National Progress

August 10, 2025

How Dirt Batteries Could Power the Energy Transition

August 10, 2025

Gold Futures Jump to Record High on US Tariff Surprise

August 10, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.