Dollar Squeeze, Accelerating Inflation Pummel Ethiopian Currency
- Birr has fallen 26% against dollar on black market since May 1
- Central bank has detected increased use of cryptocurrencies
The Merkato open air market in Addis Ababa.
Photographer: Simon Dawson/Bloomberg
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Surging inflation and a shortage of hard currency in Ethiopia are driving up the price of US dollars on the black market and spurring increased use of cryptocurrencies.
The birr traded at 82 per dollar on the informal market on June 6, down 26% since the start of last month, according to two traders in the capital, Addis Ababa, who asked not to be identified for fear of reprisals by the authorities. The Ethiopian currency’s official rate is currently 52 birr per dollar.