A key illustration of this trend is Global Bank, which commenced the week with a rate of 107.11 Br for a dollar and concluded at 112.47 Birr, marking a five percent depreciation. Similar depreciation patterns were evident at other commercial banks, including Wegagen, Enat, and Tsehay Bank, with depreciation rates of 12pc, 11%, and 14pc, respectively.
Over the week, the average rates across 17 commercial banks, including the state-owned CBE, were 100.61 Br for buying and 112.04 Br for selling. These figures depict a concerning scenario for a currency under severe strain, a manifestation of a widening trade deficit, limited foreign exchange reserves, and persistent inflation.
To alleviate some of this pressure, the Central Bank conducted a mid-week auction, posting a weighted average rate of 107.9 Br a dollar. However, market reactions indicate limited confidence in the Birr’s recovery.
