Ethiopia devalues birr by 15%

Addis Ababa, October 10, 2017 (FBC) –In order to boost export, Ethiopia is to devalue birr by 15 percent as of tomorrow, said the National Bank of Ethiopia (NBE).

Moreover, interest rate on deposit will increase by 7 percent from 5 percent now, according to Dr Yohannes Ayalew, Chief Economist and Vice Governor of NBE told journalists today.

Ethiopia’s export has been growing rapidly, at 24.1 percent between 1996 and 2004 EC.

However, as a result of the decease in prices of commodities at the global market, the country’s export performance declined between 2005 and 2009 EC, he said.

The decrease in prices highly affected Ethiopia’s main export committees such as coffee, oil seeds, leather and leather products as well as gold.

In order to attain the target set out in the 2010 plan and increase the earnings from agricultural, mining and service sector, the government has therefor made adjustment on exchange rates, he said.

Accordingly, as of tomorrow, Ethiopian birr will be devalued by 15 percent against foreign currencies, while interest rates on deposit will increase by 7 percent from 5 percent now.

For example, one dollar will be exchanged for 26.9303 birr.

Translated and posted by Amare Asrat