Ethiopia: Birr devaluation set to be a mixed blessing for economy

By Harry Clynch
Posted on Wednesday, 11 January 2023 09:40

A woman counts Ethiopian birr notes in Addis Ababa November 14, 2015. Picture taken November 14, 2015. REUTERS/Tiksa Negeri

As Ethiopia battles the economic consequences of the coronavirus and the war in the Tigray region, speculation abounds that the country will require a bailout from the International Monetary Fund (IMF) to avert a sovereign debt default.

The country’s central bank, the National Bank of Ethiopia, is battling a severe shortage of foreign exchange reserves that hurts efforts to service the dollar-denominated debt.