The Ethiopian birr has depreciated past the 150 mark. Banks are establishing a new floor for the currency amid ongoing economic pressures.
Ethiopia's national currency, the birr, has crossed the critical 150 threshold against major foreign currencies, signaling further depreciation. This development, reported by Addis Fortune, the largest English weekly business news outlet in Ethiopia, highlights challenges in the country's foreign exchange market.
Banks have responded by forming a new floor price to stabilize transactions and curb excessive volatility. The move comes as Ethiopia grapples with economic reforms aimed at liberalizing its tightly controlled currency regime.
Addis Fortune, known for covering Ethiopian business news, detailed the slippage in its latest update, underscoring the implications for importers, exporters, and everyday consumers. No specific timeline or exact exchange rate figures beyond the threshold were provided in the report, but the event marks a significant shift in the birr's value.
This adjustment by banks reflects broader efforts to manage inflation and support economic stability in Ethiopia.