Now the Ethiopisn government has got IMF and World Bank's money and that money could be used to stabilise the Hard Currency But after sometimes when that money is used the value of Birr will fall dramatically. In Ethiopia for generation the Import-export = deficit, it means in the coming future Hard Currency will be very expensive. The reason why the Economist didn't see the rise in exchange rate which has been 100 dollars =118 birr is because of IMF money and when that money gone, the inflation will rises up instatly. Peace and security, Foreign Direct Investment, Remittance, Increasing export goods and services, Aid and workable business atmosphere could have played a big role in order to stabilise Birr but most of them are wishes.
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@mdaaaa12112 ай бұрын
Sorry, but this was a very poor explanation. Franco value simply means you can use whatever hard currency you have. However you got it, legally or illegally, you can import whatever you want, no question asked without bank LC. This will open the door for capital flight, white washing, and money laundrying of illegally gained money. This will also lead to businessmen bringing luxury goods like whisky and electronics where they can get high profit margins instead of bringing essential goods like fertilizer, weat, baby formula...ect. It will also kill all protection for domestic factories. This means less product, more unemployment, and more dependency on foreign import. This again will exasperate the dollar shortage and witch again devalue the birr. The bottom line, As long as Ethiopia doesn't produce enough goods for domestic consumption and exports, it will not remove the black market.
@GeseseBerehe2 ай бұрын
Ermias ene yalgebagn ahun genzeb sigegn lmn legal or governmental controband negd fekedu ende akmada tasra eyale sayfekdu ahun endt wenjel yeseralu ?