Ethiopia has imported 14 million litres of cooking oil to ensure a steady supply of this essential commodity, the trade minister said. This follows the central bank’s decision last week to float the national currency to secure international support.
Last week, the Ethiopian birr fell against the dollar following the National Bank of Ethiopia’s adoption of a market-driven foreign exchange rate. This move was aimed at securing a new International Monetary Fund (IMF) lending program and advancing a long-awaited debt restructuring.
The Ethiopian birr depreciated by 40% against the dollar to 95.69 per greenback on Monday, following the National Bank of Ethiopia’s adoption of a market-driven exchange rate. In some private banks, the rate exceeded 100 birr per dollar.
This currency shift occurred after Ethiopia secured a $3.4 billion IMF deal and additional funding from other creditors, including the World Bank.
Traders in Addis Ababa reported a 25% increase in cooking oil prices due to the currency change.
Ethiopia’s Trade and Regional Integration Minister, Kassahun Gofe, announced on Sunday that businesses raising prices on essential goods could face temporary closure or license revocation.
Following the implementation of the new exchange rate policy, the ministry shut down over 2,000 stores for “unjustified price hikes and hoarding”, according to a statement released on Saturday.
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