Addis Ababa, January 24, 2025 – The second day of the International Conference on the Flotation of the Ethiopian Birr and Its Economic Implications showcased a series of compelling empirical presentations and a highly engaging panel discussion, focusing on the interplay between currency floatation, real exchange rate misalignment, and economic growth in Ethiopia.
The session began with an insightful presentation by Teklebirhan Alemnew, researcher at the International Food Policy Research Institute (IFPRI), on the topic “Real Exchange Rate Misalignment and Economic Growth: An Empirical Analysis for Ethiopia.” Teklebirhan ‘s analysis shed light on the economic distortions caused by exchange rate misalignments and their impact on Ethiopia’s growth trajectory.
This was followed by a thought-provoking presentation by Professor Abebe Shimeles, Distinguished Professor and Senior Advisor to the Ministry of Finance, on “Foreign Exchange Regime, Misalignment, and Economic Growth.” Prof. Abebe’s presentation delved into the implications of various foreign exchange regimes and the economic challenges posed by misaligned exchange rates, providing both theoretical insights and policy recommendations.
The session, moderated by Dr. Selamawit G/Egziabher, facilitated an interactive platform for participants to discuss the findings. Dr. Kiflu Degef served as the rapporteur, ensuring the session’s critical points and recommendations were documented.
A robust discussion followed, where participants actively engaged with the presenters, raising questions about Ethiopia’s transition to a floating exchange rate and its potential effects on trade, inflation, and overall economic stability.
The day’s events reaffirmed the importance of evidence-based research in guiding Ethiopia’s bold economic reforms, offering policymakers actionable insights to navigate the complexities of currency floatation.
The conference continues with more panels and discussions, bringing together distinguished experts to chart Ethiopia’s path to sustainable economic growth.
Stay tuned for further updates.
