Ethiopian Birr Falls to 190 Against $ in Parallel Market

Ethiopian Birr has fallen to 190 against $ in parallel market. The depreciation in the value of birr began in July 2024.

Official selling price of the US dollar announced by the Ethiopian state owned Commercial Bank today is 163.4365 and its buying price is 160.2319. But in the currency exchange black/parallel market, people bought dollar for around 190 birr today. Most of the dollar selling and buying transactions in the last 6 hours in Ethiopian black market were conducted over 190 birr/dollar.

Despite liberalization of foreign exchange market in July 2024, the Ethiopian government could not succeed in eliminating the currency exchange black market. The government launched several crackdowns in Tog Wajaale town on Somaliland Ethiopia border. The town serves as a center of Ethiopian foreign exchange black market. Tog Wajaale is a primary gateway for trans border trade—including massive legal and illegal flows of commodities like Khat—the demand for hard currencies completely bypasses formal banking channels.

Government blames overall global economic conditions for birr depreciation. But the explanation, partially true, is not convincing. Ethiopian currency birr has been one of the worst performing currencies in Africa in 2026. According to some experts, the liberalization of economy, introduced by the government in July 2024, was done in a hasty manner without proper homework.

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