Ethiopia is planning to devalue birr in the next few days, reportedly. The devaluation is expected to happen at the heels of a key meeting between the International Monetary Fund and Ethiopian Government delegations on Monday…
The Government has been in talks with the IMF for months for a $3 billion bailout package. One of the main obstacles to the signing of final agreement between IMF and the government is the value of Ethiopian currency birr, The official exchange rate of birr is 57 per dollar but in black market it is trading at around 120 per dollar. The IMF and World Bank have been urging the Ethiopian government to devalue birr significantly before any bailout package.
Today IMF’s executive board is due to meet about Ethiopia. The executive board generally meets when the members vote on a new loan or review a loan. Some sources say that Ethiopia has already signed a staff level agreement with the IMF, but it will be made public next week, Reportedly, the Ethiopian government is considering depreciation of birr by 10-15%. No official announcement has been made by the Ethiopian government about final agreement with IMF and birr devaluation.
