𝐄𝐭𝐡𝐢𝐨𝐩𝐢𝐚'𝐬 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐄𝐱𝐩𝐞𝐫𝐢𝐦𝐞𝐧𝐭
𝑭𝒓𝒂𝒏𝒄𝒐 𝑽𝒂𝒍𝒖𝒕𝒂 & 𝒕𝒉𝒆 𝑷𝒂𝒕𝒉 𝒕𝒐 𝑴𝒂𝒓𝒌𝒆𝒕 𝑳𝒊𝒃𝒆𝒓𝒂𝒍𝒊𝒔𝒂𝒕𝒊𝒐𝒏
Ethiopia’s recent liberalisation of its foreign exchange regime has significantly changed its economic landscape. One of the most notable developments is the expanded use of Franco Valuta imports.
This scheme, which allows importers to settle their obligations with foreign currency outside the domestic banking system, has been controversial. While it offers businesses greater flexibility and potentially relieves pressure on the central bank’s foreign exchange reserves, concerns remain about its potential impact on inflation, parallel exchange markets, and illicit financial flows, reports EBR’s Munir Shemsu.
Read more: https://ethiopianbusinessreview.net/ethiopias-economic-experiment/
𝑭𝒓𝒂𝒏𝒄𝒐 𝑽𝒂𝒍𝒖𝒕𝒂 & 𝒕𝒉𝒆 𝑷𝒂𝒕𝒉 𝒕𝒐 𝑴𝒂𝒓𝒌𝒆𝒕 𝑳𝒊𝒃𝒆𝒓𝒂𝒍𝒊𝒔𝒂𝒕𝒊𝒐𝒏
Ethiopia’s recent liberalisation of its foreign exchange regime has significantly changed its economic landscape. One of the most notable developments is the expanded use of Franco Valuta imports.
This scheme, which allows importers to settle their obligations with foreign currency outside the domestic banking system, has been controversial. While it offers businesses greater flexibility and potentially relieves pressure on the central bank’s foreign exchange reserves, concerns remain about its potential impact on inflation, parallel exchange markets, and illicit financial flows, reports EBR’s Munir Shemsu.
Read more: https://ethiopianbusinessreview.net/ethiopias-economic-experiment/