July 29- August 3, 2024
The government of Ethiopia announced that a market-based exchange rate will be implemented on July 28, 2024. On July 29, the Commercial Bank of Ethiopia announced its inaugural market-based exchange rate, setting the rate for 1 USD at 74.7 for buying and 76.23 for selling. The Ethiopian foreign exchange market has faced a persistent shortage of foreign currency for several years, exacerbating the significant gap between official and parallel market rates. According to an announcement by the International Monetary Fund (IMF), foreign exchange reserves currently amount to 0.5 months of imports, a stark contrast to the 2.4 months of imports recorded five years ago (2018/19 fiscal year).
