ADDIS ABABA — Ethiopia's recent macroeconomic reform measures have increased remittance inflow to the country while narrowing the gap between official and parallel markets, Economic Experts said.
The Experts told local media that the implementation of the macroeconomic reform measures have substantially increased remittancesthat would help, in return,to stabilize the national economy.
Economist Bogale Boshe (PhD) stated that the implementation of macroeconomic reform has been scaling up the revenue the country secures from remittance as it has been narrowing the gap between the formal and informal exchanges.
Currently, there is no reason to exchange forex in black market since the transaction of remittance through banks creates credibility, he said, adding that this development encouraged Diasporas to send money home using formal means.
According to him, investors' property should be legally protected to sustain the increased inflow of remittances. Hence, the loans for local investors should be maximized side by side to the growingremittance to meet demand and supply.
Economic Expert Atinafu Gebremesekel (PhD) also believed that the policy shift has accelerated the flow of remittance to the country. However, the effort requires building trust among investors regarding property ownership, investmentprotectionsand others.
Recently, Planning and Development State Minister Tirumar Abate said that country's comprehensive macroeconomic reform has been achieving a remarkable success in major economic sectors such as export, FDI, remittance, inflationcontrol and so on.
The economic reform has not only boosted foreign currency earnings, but also narrowed the gap between the black market and official exchange rates, creating a more favorable environment for exports and attracting foreign direct investment, she added.
She emphasized the government's proactive role in controlling inflation, particularly for essential commodities such as fuel, fertilizers, and medicines. These efforts have contributed to a more stable economic landscape while further supporting the growth of the export sector.
