Gap Between Official and Parallel Dollar Exchange Rates Narrows, Says Ethiopian Economics AssociationThe gap between Ethiopia’s official and parallel (black market) foreign exchange rates has narrowed by 4.7 percentage points, according to a new study released by the Ethiopian Economics Association (EEA). “The data show a relative narrowing of the gap between the official and parallel market exchange rates compared to the previous quarter,” Nasser explained. Nasser noted that both the dollar exchange rate and the price of birr continue to show volatility, indicating broader market uncertainty. “Because Ethiopia imports a wide range of essential goods, exchange rate instability directly affects price levels,” he said. The Ethiopian Economics Association concluded that while the narrowing exchange rate gap is a positive development, sustained policy efforts are needed to ensure long-term stability in the foreign exchange market and the broader economy.

Source: Ethiopian News December 26, 2025 04:22 UTC