Ethiopian birr will hit 50 per dollar within days furthering economic collapse

The Ethiopian birr has continually degraded in value since 2018 and this has accelerated over the past year and falling faster the past few months

Complete collapse of the Ethiopian economy into a state of worthless currency and financial chaos is drawing closer every day. Long lines for diesel or gasoline costing many times its traditional costs are now a reality in the capital city of Addis Ababa. In a country where 50% of food requirements must be imported now the government has announced there will be no more food subsidy which will send prices soaring.

Over $2.5 billion in debt has been added just this year in payments to countries (UAE, Turkey, Iran )in hard foreign currency or gold reserves. This has resulted in cuts to medical services and supplies, education, infrastructure, and housing as well as the ending of food and fuel subsidies.

The Ethiopian government national debt is skyrocketing out of control under Abiy Ahmed leadership to levels that are unsustainable

The Ethiopian economy and the value of its currency has been on a continual downslide since Abiy Ahmed and his Prosperity Party took office in 2018. While for the previous 10 years the Ethiopian economy grew at 10% annually for the upcoming year it has become unpredictable but estimated to be -2 to -3% by the International Monetary Fund. Meanwhile the total Ethiopian government debt is now projected to be $60 billion by the end of 2022 and approach $100 billion in the next four years. The Ethiopian government now no longer publishes Consumer Price Index numbers.

 

 

Author: Professor Tony Magana

Professor Tony Magana is Head of the Department of Neurosurgery, School of Medicine, College of Health Sciences at Mekelle University in Mekelle, Ethiopia. He directs a neurosurgery residency and training program as well as neuroscience research.

One thought on “Ethiopian birr will hit 50 per dollar within days furthering economic collapse”

  1. Of course. Ethiopian government has invited foreign troops and governments to invade and committed genocide on its own citizen, destroying Properties including universities, hospitals, and other public facilities that pays tax to the federal government. Even historical churches and mosques have been destroyed and looted by federal and foreign troops. Not to mention rapes, mass executions and mass arrests. Ethiopia is grave yard for its citizens and hell to live

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