ANNOUNCEMENT 01 Jul 2009

In July 2009, the government of Ethiopia announced the devaluation of its national currency.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



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_editors_note.htm

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


Inception date: 01 Jul 2009 | Removal date: open ended
Still in force

Competitive devaluation

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 thedecision on January 30, 2010.