Commercial banks are now selling a dollar for as high as 42 Birr, an increase from 39.59 Birr on January 1, 2021. This is as the government attempts to implement a market-driven foreign currency regime and eventually liberalize the exchange market.
Ever since the beginning of this year, Birr has been depreciated by six percent against dollar. In case of pound sterling and euro, the depreciation rate reach seven percent and two percent, respectively.
The government has been reducing the value of the major baskets of foreign currencies for the last two and half years.
When Prime Minister Abiy Ahmed (Ph.D.) came to power on April 2018, a dollar was being sold for 27.52 Birr. This means Birr has been depreciated by 52.1 percent since then.