black market exchange rate dollar to birr today

In early 2021, the government sought debt restructuring under the Group of 20's Common Framework-a plan targeted at restructuring government debt in low-income countries. However, such progress was insufficient to change the country's debt distress rating from high risk to moderate risk. By March 31, 2023, this figure had dropped to 38.8%. In June 2021, the total nominal public sector debt, both external and domestic, accounted for about 51% of the GDP. Over the past three years, Ethiopia has seen some improvements in its debt stress status, as measured by the debt-to-GDP ratio. 'If these reforms had been fully implemented, the current macroeconomic situation would be different,' Tewodros remarks. Tewodros Makonnen (PhD), a country economist at the International Growth Center (IGC) Ethiopia, argues that many of the tasks outlined in the reform agenda have remained incomplete due to the COVID-19 pandemic and internal conflicts in the country. This substantial premium of over 100% marks a significant event in the nation's economic history. With the official rate currently at around 55 birr per dollar, the scarcity of hard currency has driven the black-market value of a dollar to surpass 110 birr.

In recent years, the local currency, the birr, has experienced a consistent decline in value against major international currencies, particularly the US dollar. However, achieving this in an environment with relatively high inflation remained challenging for the government. The other target of the first reform agenda was to uphold a stable exchange rate. Yet, the current situation is far from the intended targets. The previous reform agenda, initiated in 2019, aimed to maintain a stable macroeconomic environment, reduce debt vulnerabilities, and limit inflation to single digits. The forthcoming macroeconomic reform will primarily focus on two aspects: halving the debt-to-GDP ratio and reducing inflation to below 30%. Led by Eyob Tekalign (PhD), State Minister for Finance, the consultations centered around economic reforms to be implemented in the next three years. The announcement comes two weeks after the conclusion of consultations with the executive committee of the Development Assistance Group (DAG).

Black market exchange rate dollar to birr today