Ethiopia’s economic situation, particularly its decision to let its currency depreciate in order to secure a loan from the International Monetary Fund (IMF). This is a significant move for several reasons:
- Currency Depreciation: Allowing the currency to depreciate can make exports cheaper and more competitive internationally, which can help boost the country’s export sector. However, it can also lead to higher import costs and inflation, affecting the cost of living and economic stability.
- IMF Loan: Securing a loan from the IMF often involves implementing certain economic reforms or adjustments. These can include fiscal tightening, structural reforms, or changes in monetary policy. The goal is usually to stabilize the economy and restore growth, but these measures can be challenging and unpopular domestically.
- Economic Impact: The impact of such a move depends on various factors, including the scale of the currency devaluation, the conditions attached to the IMF loan, and the overall economic context. For Ethiopia, which has faced various economic challenges, the hope would be that the loan and currency adjustments help address some of these issues.
Title should read, “Abiy Ahmed’s OLF-Faction lets Ethiopian Currency go into Freefall to achieve its mission of destroying the nation.”
There is no country in the world today where inflation has not adversely affected citizens standard of living. Grocery items show prices stabilizing and coming down on one Saturday and then going back up in the next one. Meat and dairy prices are getting out of reach for lower income people. Housing is in crisis in almost every country with more and more people going homeless. Since the commies in Beijing unleashed the deadly pandemic COVID-19 that resulted in the wreckage of the once strong supply chain, the entire world has been in economic crisis. When we think we are seeing a light in a tunnel, then there comes another bully from Moscow that invaded an independent country that seriously damaged the recovering supply chain. Don’t forget the crisis terrorists triggered in the Middle East.
My understanding is this new currency policy was enacted in accordance with The IMF and World Bank suggested outline. I chose to wait and see what effects this policy will have on the grinding inflation. The two major financial institutions of that country are being led by two over qualified experts, H.E. Ahmed bin Shide and Governor H.E. Mama bin Mihretu. They still have and will continue to have my confidence in their capabilities.
That country’s economic problems is not the result of foreign factors only but also its own internal crisis. Due to lack of peace and stability inside the country production has been adversely affected. Civilian workers are being murdered or kidnapped for ransom on their way to work by thugs in both Oromia and Amhara regions. Corruption is still a throbbing headache. Are you trying to tell me that the black market does not have the hands of corrupt officials in it? How about the Diaspora playing a big part in perpetuating the currency exchange black market? So, what’s up doc?
There is no need to wait to make your judgment. Look no further than Nigeria, where the USD to Nigerian Naira exchange rate was 400 last year. Just a week ago, that exchange rate went up to 1 USD to 1500 Nigerian Naira after implementing the IMF recommendations.
Are they overqualified? I have no information about the academic qualifications of the former, but the latter is a lawyer. I would also like to mention Zimbabwe, grounded with a trillion, galloping inflation rate decades ago and is still suffering.
“…ንጉሥሽ ሕፃን የሆነ፥ መኳንንቶችሽም ማልደው የሚበሉ፥ አንቺ አገር ሆይ፥ ወዮልሽ!” መክ 10፥16