Ethiopia’s black market exchange rate for the US dollar has reached a critical milestone, crossing the 140 birr mark. This widening gap between the black market and the official rates presents serious challenges for the country’s economy, businesses, and consumers. As of mid-October 2024, while the official National Bank of Ethiopia (NBE) rate stands at 116.97 birr per dollar, the informal market has surged to 140 birr, reflecting an alarming divergence.
The 140 Birr Milestone: A Tipping Point
The significant rise in the black market rate, now standing at 140 birr per dollar, marks a crucial tipping point in Ethiopia’s foreign exchange struggles. This milestone comes after months of growing instability, largely fueled by the inability of the formal financial system to meet the demand for foreign currency. This divergence from the official rate is the clearest indicator yet that…
