Gap Between Ethiopian Currency's Official and Parallel Market Exchange Rate Grows to New Record
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Loading... - Cynthia otoo
- 24 Oct 2022
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The Ethiopian birr currency’s parallel exchange rate against the U.S. dollar recently dropped to a low of 92 birrs per dollar, a report has said. The report added that following this latest plunge, the gap between the birr’s official and parallel market exchange rates has widened to a record high.
Resumption of Fighting Between Ethiopian Government Forces and Tigray Rebels Identified as the Cause
The gap between the Ethiopian currency’s official and parallel market exchange rate against the greenback widened to a new record higher after the latter rate plunged 92 birrs for every dollar. Officially, one dollar buys 52.5 units of the local currency.
According to a Bloomberg report that quotes Fikadu Digafe, the vice governor and chief economist at the National Bank of Ethiopia (NBE), the resumption of hostilities in the Tigray region is one of the key factors that caused the Ethiopian currency’s latest plunge. As many media reports have suggested, the fighting between the Ethiopian government and Tigray rebels restarted in late August after five months of a lull in hostilities. Read More...
