Ethiopia's central bank has allowed the local currency to trade freely under a major reform needed to unlock more than $10 billion in financing and debt relief as the government negotiates with the International Monetary Fund.
The decision to ease restrictions on the foreign exchange regime announced by the central bank on Monday led to a decline in the birr currency by about 30 percent. The move was unveiled as the debt-stricken country awaits a multi-billion dollar deal to secure much-needed funding from the International Monetary Fund after difficult and protracted negotiations. The National Bank of Ethiopia has announced a series of foreign exchange reforms, including major new policy changes, which will be “transitioning to a market-based exchange rate system.”
Source (Al-Arab Newspaper of London, Edited)
