The Ethiopian Economics Association (EEA) has released its flagship Quarterly Macroeconomic Updates on the Ethiopian Economy (Volume 10, No. 03), focusing on Ethiopia’s exchange rate reform one year after the move to a floating regime. The report shows the Birr continued to face strong depreciation pressure, weakening 8.1% in Q1 FY2025/26, while buying and selling rate spreads across banks widened sharply, signaling deeper market segmentation and liquidity gaps.

Despite these pressures, the parallel market premium narrowed, and competitiveness improved with a 26.4% depreciation in the Real Effective Exchange Rate. Global market shifts, rising export prices for gold and coffee alongside higher fertilizer costs, and strengthening external demand also shaped the quarter’s macroeconomic landscape. Readers are encouraged to access the full report for deeper insights and policy-relevant analysis on Ethiopia’s evolving macroeconomic landscape.

Download the Update: https://eea-et.org/…/ethiopias-exchange-rate-reform…/