Ethiopian birr devalued, IMF welcomes move

Reuters
September 1, 2010
Barry Malone
* Birr at weighted average of 16.3514 against dollar
* IMF says devaluation will “bolster competitiveness”
ADDIS ABABA – The Ethiopian birr ETB= was devalued by 16.7 percent on Wednesday, according to exchange rates published on the central bank’s website, a move welcomed by the International Monetary Fund (IMF).
The birr was quoted by the National Bank of Ethiopia at a weighted average of 16.3514 against the dollar compared with 13.6284 on Tuesday. A central bank official confirmed the new rate but was not authorised to make further comment.
“The IMF welcomes this move given it will help bolster Ethiopia’s competitiveness,” IMF representative in Ethiopia, Sukhwinder Singh, told Reuters. “It will need to be supported by appropriate monetary policy.”
Last month, the government unveiled an ambitious five-year economic plan which targets average annual economic growth of 14.9 percent over the period and aims to end the Horn of Africa nation’s dependence on food aid.Read More