Ethiopia adopts market-based FX regime
Move follows monetary policy reform aimed at attracting IMF funding
Ethiopia announced that, as of today (July 29), it would float its currency and abandon its fixed exchange rate as part of wider reforms aimed at attracting funding from lenders.
The reform follows the central bank’s adoption this month of an interest-rate-based monetary policy framework, as it seeks to attract a funding package worth more than $10 billion from the International Monetary Fund, the World Bank and other creditors.
The National Bank of Ethiopia (NBE) said it would only intervene in
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