Ethiopia Shifts to Market Based Forex System to Attract IMF Loan, Currency Drops 30%
Ethiopia Shifts to Market Based Forex System to Attract IMF Loan, Currency Drops 30%
ADDIS ABABA, July 29 (Reuters) - Ethiopia’s central bank floated the country’s birr currency on Monday, a move it hopes will secure International Monetary Fund (IMF) support and make progress on a long-delayed debt restructuring.
The birr’s value against the U.S. dollar slumped by 30% to 74.73 per dollar, the country’s biggest lender, Commercial Bank of Ethiopia said. The currency had been trading at 57.48 birr to the dollar on Friday.
Reuters Media Bias Fact Check Credibility: [**High**] (Click to view Full Report)
Reuters is rated with High Creditability by Media Bias Fact Check.
Bias: Least Biased
Factual Reporting: Very High
Country: United Kingdom
Full Report: https://mediabiasfactcheck.com/reuters/Check the bias and credibility of this article on Ground.News:
- https://ground.news/find?url=https%3A%2F%2Fwww.reuters.com%2Fmarkets%2Fcurrencies%2Fethiopia-shifts-market-based-foreign-exchange-system-2024-07-29%2F
Media Bias Fact Check is a fact-checking website that rates the bias and credibility of news sources. They are known for their comprehensive and detailed reports.
Thanks to Media Bias Fact Check for their access to the API.
Please consider supporting them by donating.Beep boop. This action was performed automatically. If you dont like me then please block me.💔
If you have any questions or comments about me, you can make a post to LW Support lemmy community.Anytime I hear "Forex" especially in an Indian accent with a rolled r, its usually a scam in my mind
That's often what happens when you float a currency because the peg tends to become overvalued. That leads to eventual capital flight and draining of foreign reserves.
Is nice to see the IMF pushing for floating currencies now. They used to push pegging the currency to attract foreign investment.