Ethiopia becomes Africa's latest sovereign default

[Duufaan]

https://www.reuters.com/world/africa/ethiopia-becomes-africas-latest-sovereign-default-2023-12-26/

And They are waiting ethiopia to invest

 

[Che -Guevara]

Incompetency or theft?

 

 

[Che -Guevara]

 

[Illyria]

The level of incompetence is mind blowing.

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Ethiopia’s State Bank Mobilizes Task Force to Recoup 6 Billion Birr Lost through mysterious “system failure”

The source indicated that the Commercial Bank of Ethiopia does not yet know the amount of money it lost, but it indicated that over six billion birr worth of transactions were conducted in a matter of six hours, and over 25,000 money transfers were made.

Borkena has learned from citizens’ reports on social media that most money transfer transactions and ATM withdrawals were observed among university students. Jimma University and Addis Ababa University have issued warning statements urging students to return if they have withdrawn or transferred money from the bank and avoid facing legal consequences.

 

Last week, the bank fired more than 200 employees in connection with fraudulent educational credentials.

https://borkena.com/2024/03/18/ethiopia-state-bank-mobilizes-task-force-to-recoup-6-billion-birr-lost-through-mysterious-system-failure/

 

[Che -Guevara]

 

[Che -Guevara]

[Che -Guevara]

[Che -Guevara]

It is the IMF and World Bank have gotten their way. The devaluation of the Birr will cause more pain in the short term.

[Che -Guevara]

Ethiopia is about to face the TOUGHEST austerity measure, perhaps in the modern financial history of the country. Forced upon it by @IMFNews the depreciation of #Ethiopia currency (birr) may cause not only economic problem, but also social unrest & security challenges,

https://x.com/NatyYifru/status/1817602319816540310

[Che -Guevara]

News: Birr devaluates by initial 30% as Ethiopia introduces market-based exchange regime

Birr depreciates by initial 30% as Ethiopia introduces market-based exchange regime  - Addis Standard

ADDISSTANDARD.COM

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Birr depreciates by initial 30% as Ethiopia introduces market-based exchange regime  Addis Standard -

 

[Che -Guevara]

My Take on Macro-Economic Reform Program Policy Statement

According to Prime Minister Abiy Ahmed, the policy change in Ethiopia will have serious consequences for the country's economy and its poor people.  The analysis of possible results is as follows.

 1. Market-based Foreign Exchange Rate:
     - A possible devaluation of the Ethiopian Birr will occur, making imports more expensive and causes inflation.
     - This policy change can have a negative impact on the poor, who spend a large part of their income on essential goods.

 2. Monetary policy based on interest rate:
     - Higher interest rates may attract foreign investment but at the same time increase borrowing costs for domestic businesses and individuals.
     -Thus, this may limit access to credit for small-scale farmers and entrepreneurs, thereby increasing poverty levels.

 3. Fiscal Policy:
     - The implementation of austerity measures aimed at reducing the budget deficit may reduce essential public services and social programs.
     - This reduction could disproportionately affect the poor who depend on these services.

 4. Government Debt Management:-
     - Increased borrowing from international institutions such as the IMF and the World Bank may introduce stricter conditions, including privatization and deregulation.
     - Such measures may reduce government control over key sectors, harming the poor and vulnerable populations.

 Looking at Ethiopia's special situation:

 - Defects in good governance: 
The policy transition can be carried out without adequate supervision, which increases the risk of corruption and mismanagement.

 Underdeveloped infrastructure: 

It can divert attention and resources from infrastructure development to economic reforms.

 - Agricultural predominance: 

As 85% of the population is engaged in agriculture, the reforms may not directly meet their needs, which may exacerbate poverty and inequality. 

Finally although the policy transition is aimed at stabilizing the economy and attracting foreign investment, the potential damage to the poor population in Ethiopia is serious.  It is important for the government to carefully implement these reforms and mitigate the negative effects by developing strong social protection programs with a deep understanding of the vulnerable sections of the society.

The government must provide special protection and incentives to farmers and small businesses. 

I hope extreme devaluation won’t happen soon.

https://x.com/HabtishGurmu/status/1817721182210130055?t=BRX9b_Vyc1cQHX5QrtxYWQ&s=19

[Che -Guevara]

IMF Approves $3.4 Billion Funding Program for Ethiopia

https://www.bloomberg.com/news/articles/2024-07-29/imf-approves-3-4-billion-funding-program-for-ethiopia

 

[maakhiri1]

Birr will not be worth the paper it is printed on, hyperinflation coming soon

[Illyria]

Imagine if we had our act together, and could have taken over not only S Galbeed, but other Muslim regions: reinstitution of futuh al habasha! They are now going through what we had gone through in the 90s.