Addis Ababa, Ethiopia:-  The Ethiopian Economics Association (EEA) has released its latest report, analyzing Ethiopia’s exchange rate and inflation trends in 2024. The report notes an 11.5% depreciation of the Ethiopian Birr (ETB) against the US Dollar, signaling a shift towards a market-driven exchange rate. Despite the narrowing of the official-parallel exchange rate gap, challenges like low export capacity and weak industrialization continue to impact economic stability, with inflation driven by exchange rate fluctuations, especially in food prices.

The report recommends stabilizing the foreign exchange market, improving reserve management, attracting foreign investment, and boosting domestic production. It also calls for structural reforms in industrialization, agriculture, and export diversification to reduce import dependency and enhance economic resilience. The EEA emphasizes the need for aligned monetary, fiscal, and structural policies to achieve long-term stability.