Key facts
- Ethiopia's total dollar sales this year have exceeded $2 billion.
- The central bank is actively intervening to support the birr.
- Significant premiums persist in Ethiopia's parallel foreign exchange market.
Ethiopia's foreign exchange market has seen dollar sales exceed $2 billion this year following a recent special auction. This intervention by the country's authorities aims to bolster the value of the birr, which faces considerable pressure from a persistent double-digit premium in the parallel market. The move highlights the ongoing challenges in managing the nation's currency amidst economic pressures.