100 Dollar To Ethiopian Birr Black Market Today
Introduction
The Ethiopian Birr is the official currency of Ethiopia. However, due to various factors such as political instability and economic challenges, the black market for foreign currency is thriving in Ethiopia. In this article, we will discuss the current exchange rate between the US Dollar and the Ethiopian Birr in the black market.
Factors Affecting the Black Market Exchange Rate
The black market exchange rate is affected by several factors such as political stability, economic growth, inflation, and global events. In Ethiopia, the exchange rate is also influenced by the government's strict control over foreign currency exchange, which has led to a shortage of foreign currency in the country.
Current Exchange Rate
As of September 2021, the exchange rate between the US Dollar and the Ethiopian Birr in the black market is around 45 to 50 Birr for 1 US Dollar. This rate is significantly higher than the official exchange rate set by the government, which is around 43 Birr for 1 US Dollar.
Reasons for the High Exchange Rate
The high exchange rate in the black market is due to the high demand for foreign currency in Ethiopia. Many Ethiopians rely on remittances from family members abroad, and the shortage of foreign currency from the government has made it difficult for them to access foreign currency through official channels. This has led to the thriving black market where people can exchange Birr for foreign currency at a higher rate.
Impact on the Economy
The thriving black market for foreign currency has had a negative impact on the Ethiopian economy. It has led to a shortage of foreign currency in the country, which has made it difficult for businesses to import goods and services. This has led to a rise in prices of goods and services in the country, making it difficult for ordinary Ethiopians to afford basic necessities.
Government's Efforts to Control the Black Market
The Ethiopian government has tried to control the black market by implementing strict regulations on foreign currency exchange. The government has also tried to increase the supply of foreign currency by borrowing from international organizations and encouraging Ethiopians living abroad to send remittances through official channels. However, these efforts have not been enough to eliminate the thriving black market for foreign currency in Ethiopia.
Conclusion
The black market for foreign currency is thriving in Ethiopia due to various factors such as political instability, economic challenges, and the government's strict control over foreign currency exchange. The high exchange rate in the black market has had a negative impact on the Ethiopian economy, making it difficult for businesses to import goods and services and for ordinary Ethiopians to afford basic necessities. The government's efforts to control the black market have not been enough to eliminate it completely. Therefore, it is important for the government to implement effective policies that will increase the supply of foreign currency in the country and reduce the demand for foreign currency in the black market.