Mereja.Forum

[DefendTheTruth]

DDT,
I don't think you understand how this thing works. Now, the central bannk ENB has 2.9 billion USD. Big firms and businesses that need large amount of USD will have to buy it from the central bank because the Black market does not have that much USD to sell at $120 per 1USD.(if the black market has 3 billion dollars we wouldn't have dollar shortage)! While big dollar buyers go to central bank, small time Dollar buyers go to the Black market for a much better deal. This rate difference between the bank and street rate will force the bank to lower the price of Birr further which means bidding for 90 birr, 100 birr etc for 1 USD. So, the game just began. You call the spade a cat, but it is a spade - it is called birr devaluation.

Ay Horus,

Here it is for you, both of us didn't have much info about the content of the deal between the Ethiopian Government and IMF/WB. The difference between me and you is that you don't have an instinct based on the hitherto trajectory of the issues.

IMF softened its stance in the case of Ethiopia, do you know why?

To alleviate the impact of the currency depreciation, Ethiopia’s IMF plan sees the government spending an extra 1.5% of gross domestic product in the first year on pro-poor programs and temporary subsidies for key imported goods like fuel and fertilizer. That suggests a softer stance from the Washington-based lender on subsidies, which it usually opposes.

,

https://www.bnnbloomberg.ca/investing/2 ... ice-shock/

Abiy didn't read this article when he addressed the stakeholder in the following meeting, still he is saying the same thing to what the other party is saying.

[Selam/]

የአሣ ግማቱ ከአናቱ።

መንግስት ዕርጉም በሆነበት ሃገር ነብይ ነጋዴ ይፈጠራል ብለህ አትቃዥ።

Fact: Ethiopia has not devalued, it simply let the value freely float based on supply and demand (free market, not controlled).

In the black market the value of $ has been something around 120 ETB, the banks are now allowed to sell and buy according to their negotiated rate, without any control from the government or any other agency, according to the new macroeconomic policy of the government and the related directives of NBE.

The National Bank of Ethiopia permitted banks to buy and sell foreign currency at freely negotiated rates, according to a directive on its website. The central bank will make “only limited interventions to support the market in its early days and if justified by disorderly market conditions.”

The CBE started to sell and buy the $ at around 75 Birr, not something over 100 Birr, which is just around over 20% instead of the 100% some people were expecting the currency to plunge once the control is removed.

This shows the dollar supply was artificially reduced to help the egoist traders in the market (or other players for some sort of sinister motives).

Ethiopia’s biggest lender - the state-owned Commercial Bank of Ethiopia — quoted the birr at 74.74 against the dollar at 10:59 a.m. in the capital, Addis Ababa, on Monday morning. That’s 23% weaker than the closing rate of 57.7769 on July 26.

The youtube mob immediately started to echo unheard news of reducing the value of Birr by a government directives. Helpless souls, as always.

https://finance.yahoo.com/news/ethiopia ... 35007.html