Browsing: Ethiopia

Demonetization: a means to deter hoarding 

Ethiopia

Consider this, the first US 100 dollar bill note was issued in 1862 and the version that you know now, the Federal Reserve note featuring the US founding Father Benjamin Franklin on the foreside,  was actually launched in 1914. This means that if your great, great, great grandfather happened to bury a chest full of US100 dollar bills since then, you could still today unearth it and the bill would be accepted as legal tender i.e. the same bill note is still in circulation today. 

 Well not quite but you get the idea.  Actually, the US100 dollar bill that is used today came into circulation on July 13, 1969 and as of December 2018, the average life of a $100 bill in circulation is approximately 30 years before it is replaced due to wear. 

Ethiopia’s economy to fall to 2% in 2021 and recover to 8% in 2022

Ethiopia’s economy to recover to 8% in 2022

Countries

In 2020 gross reserves amounted to $3.1 billion which the reports said is like 2.5 months of imports and are not likely to provide a short term alternative source of development financing.

With Ethiopia expected to receive $1 billion in Eurobond in December 2024, expanding public debt in the context of large public expenditure requirements can limit the fiscal space which will lead to repayments risks. To address this challenge, the country will need to work on reforms in public finance and investments management so as to improve the efficiency of public expenditures, the report explained.

In order to contain the debt burden in the government has established the fiscal consolidation strategy ‘Home-Grown Economic Reform agenda’, which plans to expand public financing sourcing, suspend non-concessional borrowing, harness grants and concessional loan and restructure debts.