Dollar exchange rate at black market declines

Addis Ababa, July 12, 2018 (FBC) –The dollar exchange rate at the black market in Ethiopia has been declining since recently.

It is now nearly equaled with the exchange rate at the commercial banks of Ethiopia.

The exchange rate at the black market was 36 birr per one US dollars two weeks ago. However, it has declined to 28-30 birr per US dollars now.

The official exchange rate at commercial banks is 27.30 birr now.

People engaged in a black market trade do not know the reason why the exchange rate has declined at the present.

The instability occurred in the past, coupled with the low performing manufacturing sector, resulted in a severe foreign currency shortage in the country.

Though it is not a lasting solution for the problem, the United Arab Emirates (UAE) pledged a total of 3 billion US dollars in aid and investments.

It pledged to deposit 1 billion US dollar in Ethiopia’s National Bank to ease the shortage.

Prime Minister Dr Abiy Ahmed last week told the parliament that his government had injected new US dollars into the Ethiopian market.