Ethiopian Government Adopts Market-Based Foreign Exchange Rate

The Ethiopian government has announced a significant policy shift in July 2024, allowing the country's foreign exchange rate to be determined by market forces. This decision aims to enhance economic stability, attract foreign investment, and improve the efficiency of foreign currency allocation. 

The move is expected to align the exchange rate with actual market conditions, potentially reducing black market activity and stabilizing the economy. This reform marks a crucial step in Ethiopia's economic liberalization efforts.