ADDIS ABABA, Ethiopia (AP) — Ethiopia's currency lost 30% of its value Tuesday, the day after the central bank began implementing a flexible exchange rate policy backed by the International Monetary Fund as part of new measures to stabilize the eastern African nation's economy. The International Monetary Fund approved a four-year credit facility worth $3.4 billion to coincide with Ethiopia's reforms. Following the currency float, the birr depreciated by 30% in the official market against major foreign currencies. Ethiopia has long faced a critical shortage of foreign currency. For over a year, the gap between the official exchange rate and the parallel market rate soared, a disparity the government expects to narrow after the reforms.

Source: Ethiopian News July 30, 2024 13:45 UTC