Ethiopia: Experts Congratulate Currency Alteration Timeliness

The birr is the unit of currency in Ethiopia.

Economic experts have stated that the measure the Ethiopian Government has taken to alter the existing Birr note is a plausible hedge to the myriads of problems and helps the nation achieve the economic reform it has recently commenced.

Zafu Eyesuswork Zafu, an economic expert, said that since there is a huge amount of money operating in the country out of the banking system, the measures are of significantly useful in addressing a range of challenges emanating from financial hurdles.

He said, "Illicit cash flow has adversely influenced the economy of the country. Hence, in addition to introducing new currency note, banning the over 1.5 million Birr cash holding at individual or company level is very decisive to control illegal activities in the financial sector in the country and it is instrumental in limiting the amount of cash out of the banking system."

He stressed that as illegal currency flow has been leading the market of the country and causing the booming of contraband trading, altering notes is quite helpful to get people who have engaged in these activities back to the banking service.

As to him, the introduction of the new currency is supportive to halt the outflowing of foreign currency from the country through illegal means.

Sharing the idea of Zafu, TekleBirhan Gebremichael, an economist, on his part said that as the highest note is made to be 200 Birr today, the newly introduced currency may enable to print mass currency with less printing cost.

According to TekleBirhan, note alteration has multifaceted advantages as it will enable the country reduce inflation rate, get the price of dollar lowered, reduce public tendency to exchange currency at black market, contain forgery and the likes. However, the Birr already changed in to dollar either legally or illegally may be taken out of the country unless series protective measures are undertaken.

He also underscored that the government needs to implement the already pipelined measure as urgently as possible in order to tackle any sort of crime that may happen in the country following currency adjustment.

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