The Ethiopian currency has plunged to a record low against the US dollar and other currencies as woes in the country continued. The USD to ETB exchange rate surged to a high of 55.67 on Monday, much more than the YTD low of 53. The pair has jumped by more than 100% in the past five years.
The Ethiopian birr crashed as the country neared its first coupon miss as the economy faces numerous internal and external shocks. In a statement on Friday, the government warned that it was not able to pay the coupon, worth about $33 million.
As a result, the government has been attempting to negotiate with its external creditors. The goal is to reduce the interest of its sovereign bonds while extending the duration of payments. According to Bloomberg, Ethiopia has been unable to reach an agreement with these holders.[…] CONTINUE READING
