by The Fikiria Desk | Jul 29, 2024 | Economics
An economy can grow for years and still starve for the one thing that makes growth compound: a price that tells producers what to make. Ethiopia has expanded rapidly for a decade while its foreign-exchange market sent almost no honest signal. On 29 July 2024, the...
by The Fikiria Desk | Jul 29, 2024 | Farming
The farmer earns in a currency the world does not want and buys inputs priced as if it did — the oldest squeeze in African agriculture. Ethiopia’s move on 29 July 2024 to a market-based foreign-exchange regime, announced by the National Bank of Ethiopia (NBE),...
by The Fikiria Desk | Jul 29, 2024 | Property
Buildings and corridors are the slowest assets to move and the first to expose a currency mistake, because their costs are quoted in dollars and their revenues in local money. Ethiopia’s shift on 29 July 2024 to a market-based foreign-exchange regime, announced...
by The Fikiria Desk | Jul 29, 2024 | Content
The hardest discipline in reporting a currency reform is refusing to write the ending before it happens. On 29 July 2024, Ethiopia moved to a market-based foreign-exchange regime, and the temptation is to narrate where the birr will settle. This is instead an evidence...
by The Fikiria Desk | Jul 29, 2024 | Consumers
The customer is usually the last to be consulted in a currency reform and the first to feel it. Ethiopia’s move on 29 July 2024 to a market-based foreign-exchange regime, announced by the National Bank of Ethiopia (NBE), will be judged in Addis Ababa’s...