Dahabshiil Company has welcomed the shift to a market-based exchange regime as part of a major revision of Ethiopia’s foreign exchange (FX) system. A statement published on the company’s Twitter handle read as follows;
“We welcome Ethiopian PM Abiy Ahmed Ali’s statement on the key role of the private sector & entrepreneurship, & a market-based forex rate. This will be good news for our customers including the diaspora who want to remit money to Ethiopia & for its exporters & importers.”
The statement comes after The National Bank of Ethiopia (NBE) announced a shift to a market-based exchange regime as part of a major revision of the country’s foreign exchange (FX) system. The move follows the government’s announcement yesterday regarding Ethiopia’s macro-economic reform program.
According to the NBE, banks are now permitted to buy and sell foreign currencies from and to their clients and among themselves at freely negotiated rates. The Commercial Bank of Ethiopia reported a buying rate of 74 and a selling rate of 76 birr per 1 USD, showing a 30% devaluation within a day.
The American Embassy in #Addis_Abeba commented, “Implementing a market-based foreign exchange system is a tough but essential move for addressing Ethiopia’s macroeconomic issues.” They further urged, “We encourage the government to work with development partners to implement these reforms.”
