Ethiopia Devalues Birr 9.9% After Foreign Currency Shortages – By Jason McLure (Bloomberg)

July 13th, 2009 Print Print Email Email

Ethiopia devalued its currency, the birr, 9.9 percent against the dollar on July 10 after difficulty obtaining foreign exchange led to shortages of imported goods such as auto parts and medical supplies.

The country’s official exchange rate fell to 12.444 against the dollar from 11.3247 on July 9, according to the Web site of the National Bank of Ethiopia, the country’s central bank.

Ethiopia has been in talks with the International Monetary Fund over loans to help it cope with the global economic downturn. In an interview on June 19, Prime Minister Meles Zenawi said the country was likely to devalue the birr as a condition of getting IMF financing.

The Horn of Africa nation’s trade deficit was $4.5 billion last year, according to the World Bank.

To contact the reporter on this story: Jason McLure in Addis Ababa via Johannesburg on pmrichardson@bloomberg.net.

  1. babu
    | #1

    It should be devalued even further. Birr has no purchasing power in Ethiopia. The inflation rate is so high anf I think one dollar should be about 15.00 birr.
    This may help exporters and may earn fair market value for their produces.

  2. fish
    | #2

    the ignorant woyane always learn the hard way. They have a saying ” በሂደት ነው ሁሉንም ነገር የሚማሩት” this are shameless ignorant and they don’t even know when they fall dawn. Relly they are funny creatures.

  3. Daniel
    | #3

    ገርም ይላል አይደል!

  4. Sami
    | #4

    You just have to be stupid and shameless to believe in Weyannes economic growth talk. By the way did you notice how badly the Weyannes react to Obama’s Ghana speech? They are scared to death. They didn’t like it at all. You can check the Weyannes pulse by just visiting Aigaforum. First of all they never mention Obama’s speech. The speech is so good for evils to handle it. Second, they are talking about how one European Ambassador is impressed by what is going on in Ethiopia. Think about it! One European Ambassador gets impressed by Weyanne while sitting in Addis Ababa darkness about four, five times in any given week. One needs to be stupid to have that kind of point of view.

    What Obama said in Ghana was spot on.

  5. Said
    | #5

    The EPLF also opposed the TPLF manifesto for independence on the grounds that Tigrai was an inegral part of Ethiopia and there was no justification for secession from Ethiopia. At this time, the EPLF was reluctant to support separatist movements in Ethiopia, not just as a matter of princople but for various other motives as well… [more excerpts will be posted later
    http://www.ethiopianreview.com/content/10314

  6. bunabuaua
    | #6

    @Said
    Listen….. what secession? WE THE TPLF[TIGREANS] ARE ETHIOPIANS, we don’t go anywhere so stop talking garbbage.

  7. Birtikuan
    | #7

    Both EPLF and TPLF are residues of the respected Ethiopian people.

  8. getu
    | #8

    People are speculating that Tigre is going to break away from Ethiopia. This is not true, despite their manifest. They must be crazy. Now that they are in charge, the why kill the goose that lay the golden egg. Keep on milking till the country is broke. In the mean time make sure all the power is under Tigre goons. If they want to wrestle power out their hand, let the others fight it out and win it. That is Ethiopian democracy. Of course, there will be lip services in regard to democracy for outside consumption.

  9. getu
    | #9

    People are speculating that Tigre is going to break away from Ethiopia. This is not true if one see what is going on in Ethiopia under their watch, despite their manifesto. They must be crazy to abandon such opportunity . Now that they are in charge, why break away or rather why kill the goose that lay the golden egg. Keep on milking it till the country is broke. In the mean time make sure all the power is under Tigre goons. If any ethnic groups or the Ethiopians want to wrestle power out their hand, then let the others fight it out and win it. That is Ethiopian democracy. Of course, they give the usual lip services in regard to democracy for outside consumption.

  10. ayele
    | #10

    The only way that Meles can show how good he was is to leave and see what others are capable of doing. To lead a 80m people with 90% of them don’t care for tomorrow, breeding like rabbits with no care in the world how poor they are is meeting hell face to face. Mengistu cried and told Ethiopia what kind of people we were, we never listened. We still are the most stupid people who jock on someone who try to do something good fore his or her country. We will get worst than this don’t worry. Chinese have a pride that is they sacrifice in investing for future. But we are the opposite. ከሞትኩ ሰርዶ አይብከል

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