Ethiopia: Repeated deliberate devaluation of the Birr
According to numerous and consistent press reports, the National Bank of Ethiopia has repeatedly intervened to devalue its national currency since the end of 2008. Since October 2008, the interventions amounted to a total of 25 percentage points.
In October 2008, the Birr lost 10 percent of its value against the US Dollar due to interventions in the foreign exchange market.
In July 2009, the Birr was devalued by 9.90 percentage points.
In the latest step, the Birr devalued a further 5 percent after a the macro-economic team chaired by Prime Minister Meles Zenawi made the decision on January 30, 2010.
Any Evidence-Based Deliberation:
|Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations?|
|Is there any evidence that alternatives to the proposed measure were considered?|
|Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government?|
|Was such evidence identified?|
|Is such evidence publicly available?|
|Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives?|
|Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken?|
|Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory?|
|Did the government state its intention to review the measure within one year of implementation?|
Date of inception: 30 Jan 2010
GTA Evaluation: Red
Addis Fortune. (18 January 2009). Birr Continues Nosedive Against the Dollar. Available at http://allafrica.com/stories/200901191462.html
Addis Fortune. (12 July 2009). Does Devaluation Make Sense in Ethiopia Now?. Available at http://www.addisfortune.com/Vol%2010%20No%20481%20Archive/fortune_editor...
Addis Fortune. (1 February 2010). Birr Declines Further against Mighty Dollar. Available at http://allafrica.com/stories/201002011667.html
Business Monitor. (13 July 2009). Birr: Further Depreciation Ahead. Available at http://store.businessmonitor.com/article/273789/
Ethiopian Review. (2 February 2009). Value of birr declines further. Available at http://www.ethiopianreview.com/articles/31670